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Returns to Schooling in LDCs: New Evidence from Zambia

Author

Listed:
  • Nielsen, H.S.
  • Westergard-Nielsen, N.

Abstract

We analyse the returns to schooling in Zambia in a human capital model where participation and sector choice are assumed endogenous. In urban areas, we find that the return to primary schooling is almost nil, whereas in rural areas, the return to primary education is positive. In both cases, the returns to secondary education are significant. Regarding the allocation of workers across sectors, the most able females in rural areas become self-employed, whereas males are allocated according to their comparative advantages. Females in urban areas are allocated according to their comparative advantages, whereas males are negatively self-selected into the formal sector.

Suggested Citation

  • Nielsen, H.S. & Westergard-Nielsen, N., 1998. "Returns to Schooling in LDCs: New Evidence from Zambia," Papers 98-10, Centre for Labour Market and Social Research, Danmark-.
    • Handle: RePEc:fth:clmsre:98-10
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    Cited by:

    1. Richard B. Freeman & David L. Lindauer, 1999. "Why Not Africa?," NBER Working Papers 6942, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    INCOME ; EDUCATION ; SCHOOLING ; FORMATION Aarhus C; Danmark. 31p.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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