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The returns to vocational training and academic education: Evidence from Tanzania

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  • Francis Teal
  • Godius Kahyarara
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    Abstract

    In this paper we ask what can account for the continuing strong preference for academic education in Africa where the level of development is so low and there are few wage jobs and which form of educational investment, the academic or vocational, is most profitable.� We argue that the answers to these questions are linked through the shape of the earnings function and the importance of firm effects.� High levels of acadmic education have far higher returns than those available either from vocational or lower levels of academic.� However at lower levels the vocational return can exceed the academic.

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    File URL: http://www.csae.ox.ac.uk/workingpapers/pdfs/2008-07text.pdf
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    Bibliographic Info

    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2008-07.

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    Date of creation: 01 Jan 2008
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    Handle: RePEc:oxf:wpaper:wps/2008-07

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    Related research

    Keywords: Vocational and General Education in Tanzania; Manufacturing; Training;

    References

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    1. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    2. Francis Teal & Geeta Kingdon & Justin Sandefur, 2005. "Labor Market Flexibility, Wages and Incomes in sub-Saharan Africa in the 1990s," Economics Series Working Papers GPRG-WPS-030, University of Oxford, Department of Economics.
    3. Marcel Fafchamps & Måns Söderbom & Najy Benhassine, 2006. "Job Sorting in African Labor Markets," CSAE Working Paper Series 2006-02, Centre for the Study of African Economies, University of Oxford.
    4. Paul Bennell, 1996. "General versus vocational secondary education in developing countries: A review of the rates of return evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 33(2), pages 230-247.
    5. Soderbom, Mans & Teal, Francis & Wambugu, Anthony, 2005. "Unobserved heterogeneity and the relation between earnings and firm size: evidence from two developing countries," Economics Letters, Elsevier, vol. 87(2), pages 153-159, May.
    6. Monazza Aslam, 2006. "Rates of Return to Education by Gender in Pakistan," Economics Series Working Papers GPRG-WPS-064, University of Oxford, Department of Economics.
    7. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
    8. Tansel, Aysit, 1994. "Wage employment, earnings and returns to schooling for men and women in Turkey," Economics of Education Review, Elsevier, vol. 13(4), pages 305-320.
    9. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    10. Neuman, Shoshana & Ziderman, Adrian, 1991. "Vocational schooling, occupational matching, and labor market earnings in Israel," Policy Research Working Paper Series 683, The World Bank.
    11. Moenjak, Thammarak & Worswick, Christopher, 2003. "Vocational education in Thailand: a study of choice and returns," Economics of Education Review, Elsevier, vol. 22(1), pages 99-107, February.
    12. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
    13. Shoshana Neuman & Adrian Ziderman, 1991. "Vocational Schooling, Occupational Matching, and Labor Market Earnings in Israel," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 256-281.
    14. Duraisamy, P., 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Papers 815, Yale - Economic Growth Center.
    15. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    16. Måns Söderbom & Francis Teal & Anthony Wambugu & Godius Kahyarara, 2003. "The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing," CSAE Working Paper Series 2003-17, Centre for the Study of African Economies, University of Oxford.
    17. De Beyer, Joy, 1990. "The incidence and impact on earnings of formal training provided by enterprises in Kenya and Tanzania," Economics of Education Review, Elsevier, vol. 9(4), pages 321-330, December.
    18. Geeta Gandhi Kingdon & Jeemol Unni, 2001. "Education and Women's Labour Market Outcomes in India," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 173-195.
    19. Kathleen Burke & Kathleen Beegle, 2004. "Why Children Aren't Attending School: The Case of Northwestern Tanzania," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 13(2), pages 333-355, June.
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    Cited by:
    1. Calvès, Anne E. & Kobiané, Jean-François & N’Bouké, Afiwa, 2013. "Privatization of Education and Labor Force Inequality in Urban Francophone Africa: The Transition from School to Work in Ouagadougou," World Development, Elsevier, vol. 47(C), pages 136-148.
    2. Pugatch, Todd, 2012. "Safety Valve or Sinkhole? Vocational Schooling in South Africa," IZA Discussion Papers 7015, Institute for the Study of Labor (IZA).
    3. Christophe Muller & Christophe J. Nordman, 2012. "Wages and On-the-Job Training in Tunisia," Working Papers halshs-00793383, HAL.
    4. Newhouse, David & Suryadarma, Daniel, 2009. "The value of vocational education : high school type and labor market outcomes in Indonesia," Policy Research Working Paper Series 5035, The World Bank.

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