Adam Smith, for the first time, proposed the concept of wage differentials among different occupations. His theory regards an economy as an interconnected network of markets having different occupations each of which requires a training (human capital). Education acts as a backbone to an economy, the absence of which acts as a hurdle in its development path at both personal and national level. The main objectives of the study are: To examine the drivers of wage disparities among level of education decompose wage differentials into the contribution of explained and unexplained factors. We conclude that there is always positive relationship between education and wage but the external forces like having experience and training can affect this relationship. Supervisor:- Dr. Attiya Yasmin Javid