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Returns to Education in South Africa: Evidence from the Machibisa Township

Author

Listed:
  • David Fryer
  • Désiré Vencatachellum

Abstract

We develop a model where blacks in the private sector earn no returns to education if there are relatively too few educated blacks. Using a sample of black females in the late apartheid KwaZulu to control for labour market specific effects, we find that more than a fifth of labour market participants are self-employed. There are no returns to primary education and positive returns for the first two years of secondary education. Further education allows females to find employment in the government sector where they earn a wage premium. Only secondary education is a predictor of earnings status, and new migrants are most likely to be unemployed. Our analysis therefore contributes to challenging the consensus on high returns to primary education in developing countries. JEL Classification: D45, L10 Keywords: South Africa, Apartheid, Returns to education, Skill-biased technologies. The policy of mission education to train young black girls in domestic skills, such as sewing and cooking, had a further impact. It is against this backdrop that womens dominance in sewing, catering, and small commercial businesses focussed on these items must be understood. [Friedman and Hambridge (1991, p. 170)]
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Suggested Citation

  • David Fryer & Désiré Vencatachellum, 2005. "Returns to Education in South Africa: Evidence from the Machibisa Township," African Development Review, African Development Bank, vol. 17(3), pages 513-535.
    • Handle: RePEc:adb:adbadr:906
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    Cited by:

    1. Craig Depken Chanda Chiseni Ernest Ita, 2019. "Returns to Education in South Africa: Evidence from the National Income Dynamics Study," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 22(1), pages 1-12, May.
    2. Dula Etana & Degefa Tolossa, 2017. "Unemployment and Food Insecurity in Urban Ethiopia," African Development Review, African Development Bank, vol. 29(1), pages 56-68, March.
    3. Patrick Duff & David Fryer, 2005. "Market Failure, Human Capital, and Job Search Dynamics in South Africa: The Case of Duncan Village," Working Papers 05098, University of Cape Town, Development Policy Research Unit.
    4. Salisbury, Taylor, 2016. "Education and inequality in South Africa: Returns to schooling in the post-apartheid era," International Journal of Educational Development, Elsevier, vol. 46(C), pages 43-52.

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    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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