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The Returns to Vocational Training and Academic Education: Evidence from Tanzania

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  • Kahyarara, Godius
  • Teal, Francis

Abstract

Summary In this paper we ask what can account for the continuing strong preference for academic education in Africa where the level of development is so low and there are few wage jobs and which form of educational investment, the academic or vocational, is most profitable. We argue that the answers to these questions are linked through the shape of the earnings function and the importance of firm effects. High levels of academic education have far higher returns than those available either from vocational or lower levels of academic. However at lower levels the vocational return can exceed the academic.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 11 (November)
Pages: 2223-2242

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2223-2242

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: vocational and general education in Tanzania manufacturing training;

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References

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  1. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
  2. Tansel, A., 1992. "Wage Employment, Earnings and Returns to Schooling for Men and Women in Turkey," Papers 661, Yale - Economic Growth Center.
  3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
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  5. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
  6. Paul Bennell, 1996. "General versus vocational secondary education in developing countries: A review of the rates of return evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 33(2), pages 230-247.
  7. Soderbom, Mans & Teal, Francis & Wambugu, Anthony, 2005. "Unobserved heterogeneity and the relation between earnings and firm size: evidence from two developing countries," Economics Letters, Elsevier, vol. 87(2), pages 153-159, May.
  8. Geeta Gandhi Kingdon & Jeemol Unni, 2001. "Education and Women's Labour Market Outcomes in India," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 173-195.
  9. Geeta Kingdon & Justin Sandefur & Francis Teal, 2006. "Labour Market Flexibility, Wages and Incomes in Sub‐Saharan Africa in the 1990s," African Development Review, African Development Bank, vol. 18(3), pages 392-427.
  10. Måns Söderbom & Francis Teal & Anthony Wambugu & Godius Kahyarara, 2004. "The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing," Development and Comp Systems 0409041, EconWPA.
  11. Kathleen Burke & Kathleen Beegle, 2004. "Why Children Aren't Attending School: The Case of Northwestern Tanzania," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 13(2), pages 333-355, June.
  12. Duraisamy, P., 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Papers 815, Yale - Economic Growth Center.
  13. Marcel Fafchamps & Måns Söderbom & Najy Benhassine, 2006. "Job Sorting in African Labor Markets," CSAE Working Paper Series 2006-02, Centre for the Study of African Economies, University of Oxford.
  14. Shoshana Neuman & Adrian Ziderman, 1991. "Vocational Schooling, Occupational Matching, and Labor Market Earnings in Israel," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 256-281.
  15. Moenjak, Thammarak & Worswick, Christopher, 2003. "Vocational education in Thailand: a study of choice and returns," Economics of Education Review, Elsevier, vol. 22(1), pages 99-107, February.
  16. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
  17. De Beyer, Joy, 1990. "The incidence and impact on earnings of formal training provided by enterprises in Kenya and Tanzania," Economics of Education Review, Elsevier, vol. 9(4), pages 321-330, December.
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  19. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
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Citations

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Cited by:
  1. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, 09.
  2. Herrera, Santiago & Badr, Karim, 2011. "Why does the productivity of education vary across individuals in Egypt ? firm size, gender, and access to technology as sources of heterogeneity in returns to education," Policy Research Working Paper Series 5740, The World Bank.
  3. Calvès, Anne E. & Kobiané, Jean-François & N’Bouké, Afiwa, 2013. "Privatization of Education and Labor Force Inequality in Urban Francophone Africa: The Transition from School to Work in Ouagadougou," World Development, Elsevier, vol. 47(C), pages 136-148.
  4. Christophe Muller & Christophe J. Nordman, 2012. "Wages and On-the-Job Training in Tunisia," AMSE Working Papers 1222, Aix-Marseille School of Economics, Marseille, France.
  5. David Newhouse & Daniel Suryadarma, 2011. "The Value of Vocational Education: High School Type and Labor Market Outcomes in Indonesia," World Bank Economic Review, World Bank Group, vol. 25(2), pages 296-322, May.

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