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Returns to education in developing countries: Evidence from the living standards and measurement study surveys

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  • Peet, Evan D.
  • Fink, Günther
  • Fawzi, Wafaie

Abstract

We use 61 nationally representative household surveys from 25 developing countries between 1985 and 2012 to assess whether returns to education are systematically higher in developing countries, and to investigate whether recent increases in access to human and physical capital have altered returns. We find no evidence of systematic “excess returns” in developing countries, and estimate an average return to schooling in the represented countries of 7.6%. We also do not find evidence of systematic changes in returns over the past two decades. Overall, returns appear highly heterogeneous, with lower returns in rural areas, higher returns for females than males, and higher returns in the regions of Africa and Latin American than in Asia and Eastern Europe.

Suggested Citation

  • Peet, Evan D. & Fink, Günther & Fawzi, Wafaie, 2015. "Returns to education in developing countries: Evidence from the living standards and measurement study surveys," Economics of Education Review, Elsevier, vol. 49(C), pages 69-90.
  • Handle: RePEc:eee:ecoedu:v:49:y:2015:i:c:p:69-90
    DOI: 10.1016/j.econedurev.2015.08.002
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    Cited by:

    1. Serneels, Pieter & Beegle, Kathleen & Dillon, Andrew, 2017. "Do returns to education depend on how and whom you ask?," Economics of Education Review, Elsevier, vol. 60(C), pages 5-19.
    2. repec:eee:ecoedu:v:62:y:2018:i:c:p:183-191 is not listed on IDEAS
    3. repec:eee:injoed:v:60:y:2018:i:c:p:113-119 is not listed on IDEAS

    More about this item

    Keywords

    Returns to education; Economic development; Human capital;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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