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Returns to Education: An Updated Comparison from Arab Countries

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  • Reham Rizk

    (British University in Egypt (BUE))

Abstract

The paper provides a comparative study of private rate of return to education in Tunisia, Palestine, Sudan and Egypt using similar specifications, methodology and surveys. The paper employ 2010/2011 round of the Harmonized Household Income Expenditure Surveys of three Arab countries, namely, Egypt, Tunisia and Palestine. In addition, the 2009 round of Sudan is used. The paper attempts to estimate the rate of return to schooling in four Arab countries to learn more about the pattern of rewards to different levels of schooling and how individuals use these benefits to invest in education. Moreover, the paper attempts to link the structure of returns to education to labor market institutions. The findings of the paper confirm less consistency in the structure of returns in Arab countries and this is due to difference in education quality and supply and demand of graduates which has a significant influence on returns to schooling. The findings support that returns to education increases with years of schooling in Egypt due to rigid labor market, as more attention is given to credentials on behalf of skills. The rate of return on tertiary education is higher compared to basic education in all countries in standard Mincerian model. Returns to education are higher for females than males for all countries except for Sudan and Tunisia on tertiary level after accounting for jobs and regional disparity.

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  • Reham Rizk, 2016. "Returns to Education: An Updated Comparison from Arab Countries," Working Papers 986, Economic Research Forum, revised Apr 2016.
    • Handle: RePEc:erg:wpaper:986
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    References listed on IDEAS

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    1. repec:thr:techub:10014:y:2020:i:1:p:296-309 is not listed on IDEAS
    2. Sameh Hallaq, 2020. "The Palestinian Labor Market over the Last Three Decades," Economics Working Paper Archive wp_976, Levy Economics Institute.
    3. Mahdi Majbouri, 2019. "The Weight of History: A Natural Experiment in Higher Education," Working Papers 1313, Economic Research Forum, revised 21 Aug 2019.
    4. Kingsbury, Ian, 2018. "Making sense of low private returns in MENA: A human capital approach," International Journal of Educational Development, Elsevier, vol. 61(C), pages 173-183.
    5. Ragui Assaad & Miquel Pellicer & Caroline Krafft & Colette Salemi, 2002. "Grievances or Skills? The Effect of Education on Youth Attitudes and Political Participation in Egypt and Tunisia," Working Papers 1103, Economic Research Forum, revised 01 Jun 2002.
    6. Sameh Hallaq, 2019. "Wage Differential between Palestinian Non-refugees and Palestinian Refugees in the West Bank and Gaza," Economics Working Paper Archive wp_941, Levy Economics Institute.

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