Returns to Education Revisited and Effects of Education on Household Welfare in Nigeria
AbstractHuman capital development, especially higher educational attainment attaches high premium to human skills as an important factor of production. In view of this, the objective of the study is defined in two folds; first, to revisit returns to education in Nigeria and second, to investigate effects of education on the economic welfare of households in Nigeria. The study uses Double Hurdle (DH) model and Quantile Regression (QR), respectively for the objective one and two. Thus, our findings show that returns to schooling (i.e., labour market earnings) at primary, secondary and postgraduate levels are very low relative to schooling at the tertiary education in Nigeria. Also, we find the effects of primary, secondary and postgraduate education on household economic welfare to be substantially lower compared with that of tertiary education in the country. The implication of these findings is that investment up to completing tertiary education is vital for higher welfare through increasing labour market earnings among households in Nigeria.
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Bibliographic InfoPaper provided by New Zealand Agricultural and Resource Economics Society in its series 2012 Conference, August 31, 2012, Nelson, New Zealand with number 136051.
Date of creation: Aug 2012
Date of revision:
Community/Rural/Urban Development; Industrial Organization; Production Economics; Public Economics;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-11-24 (Africa)
- NEP-ALL-2012-11-24 (All new papers)
- NEP-DEV-2012-11-24 (Development)
- NEP-EDU-2012-11-24 (Education)
- NEP-LAB-2012-11-24 (Labour Economics)
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