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Family Background, Education and Earnings in Kenya

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  • Wambugu, Anthony

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

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    Abstract

    This paper uses data collected in 2000 to first estimate OLS and ordered probit models to measure correlation between family background and workers’ education. Then, human capital earnings functions are estimated to examine to what extent family background accounts for observed correlation between workers’ education and earnings. Subsequently, it estimates returns to education with education treated as endogenous. Having well-educated parents is associated with greater educational attainment and earnings. Returns to education decline slightly when parents’ education controls are in the earnings function. Instrumental variable estimation or self-selection correction suggests that estimates of returns to education may be larger than conventional estimates suggest.

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    File URL: http://hdl.handle.net/2077/2852
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    Bibliographic Info

    Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 76.

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    Length: 30 pages
    Date of creation: 20 Jun 2002
    Date of revision:
    Handle: RePEc:hhs:gunwpe:0076

    Contact details of provider:
    Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
    Phone: 031-773 10 00
    Web page: http://www.handels.gu.se/econ/
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    Keywords: Earnings function; return to education; instrumental variables;

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