Heterogeneity in returns to schooling: Econometric evidence from Ethiopia

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Heterogeneity in returns to schooling: Econometric evidence from Ethiopia

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Sourafel Girma
Abbi Kedir

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Abstract

This paper investigates whether returns to schooling in Ethiopia vary across the wage distribution of individuals. To do so, it adopts an instrumental variables quantile regression framework that allows for both endogeneity of schooling resulting from unmeasured ability, and possible heterogeneity in the impact of schooling. The empirical estimates indicate that education contributes more to the earnings of individuals at a lower end of the income distribution.

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Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 41 (2005)
Issue (Month): 8 (November)
Pages: 1405-1416
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Handle: RePEc:taf:jdevst:v:41:y:2005:i:8:p:1405-1416

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References listed on IDEAS
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Bauer, Thomas & Dross, Patrick J & Haisken-DeNew, John P, 2002. "Sheepskin Effects in Japan," CEPR Discussion Papers 3609, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Thomas Bauer & John P. Haisken-DeNew & Patrick J. Dross, 2003. "Sheepskin Effects in Japan," RWI Discussion Papers 0005, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
- Bauer, Thomas K. & Dross, Patrick J. & Haisken-DeNew, John P., 2002. "Sheepskin Effects in Japan," IZA Discussion Papers 593, Institute for the Study of Labor (IZA). [Downloadable!]
Krishnan, P., 1994. "Family Background, Education and Employment in Urban Ethiopia," Working Papers Series 93.8, Centre for the Study of African Economies, University of Oxford.
Other versions:
- Krishnan, Pramila, 1996. "Family Background, Education and Employment in Urban Ethiopia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 167-83, February.
Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank. [Downloadable!]
Other versions:
- Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January. [Downloadable!] (restricted)

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Darío Maldonado, 2007. "The Design Of Optimal Education Policies When Individuals Differ In Inheritedwealth And Ability," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE. [Downloadable!]
Other versions:
- Dario Maldonado, 2007. "The design of optimal education policies when individuals differ in inherited wealth and ability," DOCUMENTOS DE TRABAJO 003975, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
Harry Patrinos & Cristobal Ridao-Cano & Chris Sakellariou, 2009. "A note on schooling and wage inequality in the public and private sector," Empirical Economics, Springer, vol. 37(2), pages 383-392, October. [Downloadable!] (restricted)

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