Private rates of return to education of Africans in South Africa for 1995: a Double Hurdle model
In this study, the private rates of return to education of African males and females in South Africa are estimated. Both Heckman's (1976) two-stage selection model and the more recent Double Hurdle model, with correlated errors between the participation and employment equations, is found to be more suitable for the earnings analysis than the one with uncorrelated errors. This might imply that people make the decisions to participate in the labour force and to take up a job offer simultaneously. The private rate of return to education of Africans is found to be 12 and 11 per cent for males and females, respectively. These rates are significantly higher than those found in previous analyses of rates of return to education in South Africa. In these older studies, the private rate of return to education of Africans was found to vary from 2,5 to 7,7 per cent.
Volume (Year): 20 (2003)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CDSA20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CDSA20|
When requesting a correction, please mention this item's handle: RePEc:taf:deveza:v:20:y:2003:i:4:p:515-528. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.