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Wage Premia for Education and Location, By Gender and Race in South Africa

Author

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  • T. Paul Schultz

    () (Economic Growth Center, Yale University)

  • Germano Mwabu

Abstract

Despite the lower quality of education provided Africans compared with whites in South Africa, the percentage wage gains associated with additional years of primary, secondary, and higher education are substantially larger for Africans than for whites in 1993, and they increase for both race groups at higher levels of education. The lower quantity (or political quotas) of education received by Africans than whites is a simple explanation for the wage structure documented in this paper. The other two racial groups, colored (mixed races) and Indians, occupy intermediate positions between whites and Africans in terms of both the quantity of education received and wage returns to those levels of education. As barriers to employment by race are dismantled in South Africa, wage differences between races are likely to diminish, while wage differences within race groups may well widen. Quantitative expansion of educational opportunities for nonwhites at the secondary and higher education levels seems to be overdue.

Suggested Citation

  • T. Paul Schultz & Germano Mwabu, 1998. "Wage Premia for Education and Location, By Gender and Race in South Africa," Working Papers 785, Economic Growth Center, Yale University.
  • Handle: RePEc:egc:wpaper:785
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    References listed on IDEAS

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    1. Bhagwati, Jagdish N & Krueger, Anne O, 1973. "Exchange Control, Liberalization, and Economic Development," American Economic Review, American Economic Association, vol. 63(2), pages 419-427, May.
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    3. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
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    5. repec:cup:apsrev:v:87:y:1993:i:03:p:567-576_10 is not listed on IDEAS
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    Cited by:

    1. Hamoudi, Amar & Thomas, Duncan, 2014. "Endogenous coresidence and program incidence: South Africa's Old Age Pension," Journal of Development Economics, Elsevier, vol. 109(C), pages 30-37.
    2. Zafar Mueen Nasir, 2002. "Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 1-28.
    3. P. Duraisamy, 2000. "Changes in Returns to Education in India, 1983-94: By Gender, Age-Cohort and Location," Working Papers 815, Economic Growth Center, Yale University.

    More about this item

    Keywords

    Wage Structure; Educational Quotas; Returns to Education; South Africa;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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