Altay Ismayilov

Baku Higher Oil School (BHOS);

Azerbaijan State University of Economics (UNEC), 

Baku, Azerbaijan

E-mail: altay.ismayilov@bhos.edu.az; altay.ismayilov@unec.edu.az

ORCID 0000-0003-0716-7076

Return to education in Azerbaijan. Does gender matter?

Khatai Aliyev

Azerbaijan State University of Economics (UNEC),

Baku, Azerbaijan; ASERC, Baku, Azerbaijan

E-mail: khatai.aliyev@unec.edu.az  

ORCID 0000-0001-8161-6269

Nigar Bakirova

Azerbaijan State University of Economics (UNEC), 

Baku, Azerbaijan

E-mail: nigar.bakirova@gmail.com 

ORCID 0000-0002-2826-3940

Abstract. The return to education and the gender wage gap are essential issues in the public policy decision-making. Return to wage from attainment of each additional educational level can be a valuable incentive to stimulate people towards higher levels of schooling. The study investigates the return from a higher level of education to hourly earnings and the gap in “returns” due to gender identity differences in the case of Azerbaijan, a resource-rich developing country. We argue that a return to hourly wage from an additional level of education is positive and moderated by gender identity. Based on a pooled cross-sectional dataset (N=4548, n_male=2617; n_female=1931,〖Mean〗_age=34.18), empirical results support the research hypothesis and display a continuous positive return from education attainment. Simultaneously, a lesser return is identified for females. The gender return gap extends further for post-bachelor degrees. The results of this research can help deliver the message of “to earn more, learn more” at the micro-level and aid public policy officials in designing educational and gender-related policies at the macro level.

Received: June, 2021

1st Revision: May, 2022

Accepted: September, 2022

DOI: 10.14254/2071-789X.2022/15-3/1

JEL Classification: A20, H75, I26

Keywords: educational attainment, return to schooling, gender return gap, individual earnings, schooling, Azerbaijan