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Schooling Returns for Wage Earners in Burkina Faso: Evidence from the 1994 and 1998 National Surveys

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  • Harounan Kazianga

Abstract

This paper uses national survey data to estimate up-to-date private rates of return to education in Burkina Faso. Mincer earning regressions are fitted to wage data for women and men, and for public and private sector workers. The main results indicate that rates of return rise by level of education, and the public sector does not compensate female primary education. The findings suggest that current education polices which focus on increasing primary schooling supply be complemented with support for children, especially girls from resource constrained households to reach the secondary and tertiary levels. The estimated returns to education are strongly influenced by sample selection. For both men and women, failing to control for both selection in the wage sector and sector choice leads to biased estimates based on my identification of the selection process.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 892.

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Length: 31 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:egc:wpaper:892

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Keywords: Burkina; Education; Labor;

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  1. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
  2. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
  3. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630 Elsevier.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  5. Ahn, Hyungtaik & Powell, James L., 1993. "Semiparametric estimation of censored selection models with a nonparametric selection mechanism," Journal of Econometrics, Elsevier, vol. 58(1-2), pages 3-29, July.
  6. Mitali Das & Whitney K. Newey & Francis Vella, 2003. "Nonparametric Estimation of Sample Selection Models," Review of Economic Studies, Wiley Blackwell, vol. 70(1), pages 33-58, January.
  7. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003. "Fifty Years of Mincer Earnings Regressions," NBER Working Papers 9732, National Bureau of Economic Research, Inc.
  8. Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
  9. Terrell, Katherine, 1993. "Public-private wage differentials in Haiti Do public servants earn a rent?," Journal of Development Economics, Elsevier, vol. 42(2), pages 293-314, December.
  10. Steven Stillman, 2000. "The Determinants of Private and Government Sector Earnings in Russia," Working Papers 00-17, RAND Corporation Publications Department.
  11. Marcia M. A. Schafgans, 1998. "Ethnic wage differences in Malaysia: parametric and semiparametric estimation of the Chinese-Malay wage gap," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 481-504.
  12. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-67, June.
  13. Deolalikar, A.B. & Evenson, R.E., 1988. "Technology Production And Technology Purchase In Indian Industry: An Econometric Analysis," Papers 556, Yale - Economic Growth Center.
  14. Mwabu, Germano & Schultz, T Paul, 2000. "Wage Premiums for Education and Location of South African Workers, by Gender and Race," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 307-34, January.
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Cited by:
  1. Kazianga, Harounan, 2012. "Income Risk and Household Schooling Decisions in Burkina Faso," World Development, Elsevier, vol. 40(8), pages 1647-1662.
  2. Jeremy D. Foltz & Ousman Gajigo, 2012. "Assessing the Returns to Education in The Gambia-super- †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(4), pages 580-608, August.
  3. Richard Akresh & Emilie Bagby & Damien de Walque & Harounan Kazianga, 2012. "Child Labor, Schooling, and Child Ability," Mathematica Policy Research Reports 7699, Mathematica Policy Research.
  4. Akresh, Richard & Bagby, Emilie & de Walque, Damien & Kazianga, Harounan, 2010. "Child ability and household human capital investment decisions in Burkina Faso," Policy Research Working Paper Series 5370, The World Bank.
  5. Uwaifo, Ruth, 2006. "Africa's Education Enigma? The Nigerian story," 2006 Annual meeting, July 23-26, Long Beach, CA 21254, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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