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Rates of Return to Education in South Africa, 1960-1996

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  • S G Hosking

Abstract

In the face of the budget constraint it is imperative that investment in education of workers be as efficient as possible. This paper explores the scope for fine-tuning this investment by reference to rates of return by level. Evidence is surveyed on calculations of rates of return to investment in education in South Africa based on 1960, 1970, 1980 and 1996 census data, inter alia. Severely complicating factors are found to be differences in methods of calculation and failure to account satisfactorily for omitted non-education influences on earnings. It is concluded that domestic evidence suggests rates of return to investment in education may increase by level of education, rather than follow the international averages of decreasing.

Suggested Citation

  • S G Hosking, 2003. "Rates of Return to Education in South Africa, 1960-1996," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 27(3), pages 91-102, December.
    • Handle: RePEc:taf:rseexx:v:27:y:2003:i:3:p:91-102
    DOI: 10.1080/10800379.2003.12106354
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