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Return to education in Azerbaijan. Does gender matter?

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.