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Educational expansion and economic decline: returns to education in Kenya, 1978-1995

  • Simon Appleton
  • Arne Bigsten
  • Damiano Kulundu Manda

Educational expansion followed by economic decline in Kenya has been associated with a decline in the social return to secondary education, conventionally calculated, from 20% in 1978 to 6% in 1995. Wage benefits from primary school have fallen but returns remain unchanged because of correspondingly falls in costs. Returns to tertiary education have not fallen. The concept of expected returns to education is introduced to allow for effects of education on earnings from self-employment and on the probability of employment. These mirror conventionally calculated returns for men, but are higher for women due to large participation effects of education.

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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 1999-06.

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Date of creation: 1999
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Handle: RePEc:csa:wpaper:1999-06
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  1. Alan Krueger & Orley Ashenfelter, 1992. "Estimates of the Economic Return to Schooling from a New Sample of Twins," NBER Working Papers 4143, National Bureau of Economic Research, Inc.
  2. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
  3. Bevan, David & Collier, Paul & Gunning, Jan Willem, 1990. "Peasants and Governments: An Economic Analysis," OUP Catalogue, Oxford University Press, number 9780198286219, March.
  4. Orley Ashenfelter & Cecilia Rouse, 1997. "Income, Schooling, and Ability: Evidence from a New Sample of Identical Twins," NBER Working Papers 6106, National Bureau of Economic Research, Inc.
  5. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  6. Norman Gemmell,, . "Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence," Discussion Papers 95/17, University of Nottingham, CREDIT.
  7. Appleton, S., 2000. "Education and Health at the Household Level in Sub-Saharan Africa," Papers 33, Chicago - Graduate School of Business.
  8. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1994. "Endowments and the Allocation of Schooling in the Family and in the Marriage Market: The Twins Experiment," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1131-74, December.
  9. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
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