Abstract

• Education is a key determinant of labor productivity, but it seems to be downplayed in the society. This would be a great treat to increase the productivity of firms and thus to enhance the economic growth. This paper aims to quantify the causal effect of education on labor productivity in Myanmar. Using the Micro, Small, and Medium Enterprises (MSMEs) surveys of 2017 and 2019, the causal effect of education is identified by controlling the characteristics of employees, owners/mangers, and firms. Estimation results show that education has positive causal effect on labour productivity after controlling important variables. This finding suggests that policy makers should ensure that every citizen attains an education level, which they are supported to have.