Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing

Contents:

Author Info

  • Måns Söderbom

    (Centre for the Study of African Economies)

  • Francis Teal

    (Centre for the Study Of African Economies)

  • Anthony Wambugu

    (Kenyatta University, Nairobi, Kenya)

  • Godius Kahyarara

    (Economic & Research Foundation, Dar es Salaam)

Abstract

The returns to education remain a central concern for development policy. In developed countries there is evidence that the returns to education have been rising.Evidence for changes over this period for developing countries is limited. In this paper we use data from Kenya and Tanzania to estimate returns to education for manufacturing workers and examine how these returns have changed from 1980 to the late 1990s. We find strong evidence that the earnings function is convex for both countries and document significant differences in the earnings profiles across cohorts, typically with stronger convexity amongst the young. We also find evidence of increasing convexity over the 1990s in Tanzania, but remarkable stability in Kenya.We test for the importance of ability bias and find convexity robust to endogeneity. Treating education as an endogenous explanatory variable generally results in higher estimated returns to education than what is obtained by OLS. Potential reasons for this result are discussed.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/dev/papers/0409/0409041.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0409041.

as in new window
Length: 30 pages
Date of creation: 23 Sep 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0409041

Note: Type of Document - pdf; pages: 30
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: Returns to education; Africa; Kenya; Tanzania; manufacturing;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, Elsevier, vol. 24(1), pages 183-199, January.
  2. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, Elsevier, vol. 22(9), pages 1325-1343, September.
  3. Soderbom, Mans & Teal, Francis, 2004. "Size and efficiency in African manufacturing firms: evidence from firm-level panel data," Journal of Development Economics, Elsevier, Elsevier, vol. 73(1), pages 369-394, February.
  4. Paul Collier & Marcel Fafchamps & Francis Teal & Stefan Dercon, 1998. "Rates of return on physical and human capital in Africa`s manufacturing sector," Economics Series Working Papers, University of Oxford, Department of Economics WPS/1998-12, University of Oxford, Department of Economics.
  5. Bigsten, Arne, et al, 2000. "Rates of Return on Physical and Human Capital in Africa's Manufacturing Sector," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 48(4), pages 801-27, July.
  6. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, Econometric Society, vol. 56(4), pages 931-54, July.
  7. Richard Blundell & James Powell, 2001. "Endogeneity in nonparametric and semiparametric regression models," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP09/01, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  8. Geeta Gandhi Kingdon & Jeemol Unni, 2001. "Education and Women's Labour Market Outcomes in India," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 9(2), pages 173-195.
  9. Amemiya, Takeshi, 1974. "The nonlinear two-stage least-squares estimator," Journal of Econometrics, Elsevier, Elsevier, vol. 2(2), pages 105-110, July.
  10. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, Econometric Society, vol. 52(5), pages 1199-1218, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpdc:0409041. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.