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The returns to vocational training and academic education: Evidence from Tanzania

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  • Godius Kahyarara
  • Francis Teal

Abstract

In this paper we ask what can account for the continuing strong preference for academic education in Africa where the level of development is so low and there are few wage jobs and which form of educational investment, the academic or vocational, is most profitable. We argue that the answers to these questions are linked through the shape of the earnings function and the importance of firm effects. High levels of academic education have far higher returns than those available either from vocational or lower levels of academic. However at lower levels the vocational return can exceed the academic.

Suggested Citation

  • Godius Kahyarara & Francis Teal, 2008. "The returns to vocational training and academic education: Evidence from Tanzania," CSAE Working Paper Series 2008-07, Centre for the Study of African Economies, University of Oxford.
  • Handle: RePEc:csa:wpaper:2008-07
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gundersen, Sara, 2016. "Disappointing returns to education in Ghana: A test of the robustness of OLS estimates using propensity score matching," International Journal of Educational Development, Elsevier, vol. 50(C), pages 74-89.
    2. Todd Pugatch, 2014. "Safety valve or sinkhole? Vocational schooling in South Africa," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-31, December.
    3. Herrera, Santiago & Badr, Karim, 2011. "Why does the productivity of education vary across individuals in Egypt ? firm size, gender, and access to technology as sources of heterogeneity in returns to education," Policy Research Working Paper Series 5740, The World Bank.
    4. Assaad, Ragui & Krafft, Caroline, 2015. "Is free basic education in Egypt a reality or a myth?," International Journal of Educational Development, Elsevier, vol. 45(C), pages 16-30.
    5. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, pages 502-528.
    6. Christophe Muller & Christophe J. Nordman, 2012. "Wages and On-the-Job Training in Tunisia," AMSE Working Papers 1222, Aix-Marseille School of Economics, Marseille, France.
    7. Rita Almeida & Marta Faria, 2014. "The wage returns to on-the-job training: evidence from matched employer-employee data," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), pages 1-33.
    8. Francis Teal, 2016. "Are apprenticeships beneficial in sub-Saharan Africa?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 268-268.
    9. Benedikte Bjerge & Nina Torm & Neda Trifkovic, 2016. "Gender matters: Private sector training in Vietnamese SMEs," WIDER Working Paper Series 149, World Institute for Development Economic Research (UNU-WIDER).
    10. Teal, Francis, 2011. "The price of labour and understanding the causes of poverty," Labour Economics, Elsevier, vol. 18(S1), pages 7-15.
    11. David Newhouse & Daniel Suryadarma, 2011. "The Value of Vocational Education: High School Type and Labor Market Outcomes in Indonesia," World Bank Economic Review, World Bank Group, vol. 25(2), pages 296-322, May.
    12. Zara Liaqat & Jeffrey Nugent, 2015. "Under-provision of private training by MENA firms: what to Do about It?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-29, December.
    13. Karina Mahirda & Heni Wahyuni, 2016. "Returning To General And Vocational High-Schools In Indonesia," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 9-28, December.
    14. Mahmoud K. El-Jafari, 2010. "Efficiency and Effectiveness of Palestinian Vocational Education and Training," Working Papers 571, Economic Research Forum, revised 11 Jan 2010.
    15. Falco, Paolo & Kerr, Andrew & Rankin, Neil & Sandefur, Justin & Teal, Francis, 2011. "The returns to formality and informality in urban Africa," Labour Economics, Elsevier, vol. 18(S1), pages 23-31.
    16. Torun, Huzeyfe & Tumen, Semih, 2017. "Do Vocational High School Graduates Have Better Employment Outcomes than General High School Graduates?," IZA Discussion Papers 10507, Institute for the Study of Labor (IZA).
    17. Calvès, Anne E. & Kobiané, Jean-François & N’Bouké, Afiwa, 2013. "Privatization of Education and Labor Force Inequality in Urban Francophone Africa: The Transition from School to Work in Ouagadougou," World Development, Elsevier, vol. 47(C), pages 136-148.

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