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Heterogeneity in returns to schooling: Econometric evidence from Ethiopia

  • Sourafel Girma
  • Abbi Kedir

This paper investigates whether returns to schooling in Ethiopia vary across the wage distribution of individuals. To do so, it adopts an instrumental variables quantile regression framework that allows for both endogeneity of schooling resulting from unmeasured ability, and possible heterogeneity in the impact of schooling. The empirical estimates indicate that education contributes more to the earnings of individuals at a lower end of the income distribution.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380500187026
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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 41 (2005)
Issue (Month): 8 ()
Pages: 1405-1416

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Handle: RePEc:taf:jdevst:v:41:y:2005:i:8:p:1405-1416
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  1. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  2. Thomas Bauer & John P. Haisken-DeNew & Patrick J. Dross, 2003. "Sheepskin Effects in Japan," RWI Discussion Papers 0005, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  3. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
  4. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
  5. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  6. Pramila Krishnan, 1994. "Family background, education and employment in urban Ethiopia," CSAE Working Paper Series 1994-08, Centre for the Study of African Economies, University of Oxford.
  7. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
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