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Private Wage Returns to Schooling in Nigeria: 1996-1999

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  • Adebayo B. Aromolaran

    (Economic Growth Center, Yale University)

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    Abstract

    In the last two decades, primary and secondary school enrollment rates have declined in Nigeria while enrollment rates in post-secondary school have increased. This paper estimates from the General Household Survey for Nigeria the private returns to schooling associated with levels of educational attainment for wage and self-employed workers. The estimates for both men and women are small at primary and secondary levels, 2 to 4 percent, but are substantial at post-secondary education level, 10-15 percent. These schooling return estimates may account for the recent trends in enrollments. Thus, increasing public investment to encourage increased attendance in basic education is not justifiable on grounds of private efficiency, unless investments to increase school quality have higher private returns. With high private returns to post-secondary schooling, students at this level should pay tuition, to recoup more of the public costs of schooling, which may be redistributed to poor families through scholarships.

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    File URL: http://www.econ.yale.edu/growth_pdf/cdp849.pdf
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    Bibliographic Info

    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 849.

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    Length: 34 pages
    Date of creation: Oct 2002
    Date of revision:
    Handle: RePEc:egc:wpaper:849

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    Related research

    Keywords: Schooling Investment; Private Wage Returns; Efficiency; Equity; Nigeria;

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    References

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    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-40, August.
    2. Paul Schultz, T., 2002. "Why Governments Should Invest More to Educate Girls," World Development, Elsevier, vol. 30(2), pages 207-225, February.
    3. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 705-746, May.
    4. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc.
    5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    6. Robert H. Haveman & Barbara L. Wolfe, 1984. "Schooling and Economic Well-Being: The Role of Nonmarket Effects," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 377-407.
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    Cited by:
    1. Geeta Kingdon & Justin Sandefur & Francis Teal, 2006. "Labour Market Flexibility, Wages and Incomes in Subā€Saharan Africa in the 1990s," African Development Review, African Development Bank, vol. 18(3), pages 392-427.

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