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Education and Household Welfare in Sri Lanka from 1985 to 2006

Author

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  • Rozana Himaz
  • Harsha Aturupane

Abstract

This paper looks at the impact of education on household economic welfare in Sri Lanka over twenty years from 1985 to 2006 using five cross section household survey datasets. Applying quantile regression techniques the analysis finds that the incremental value to household welfare shows a distinct jump for an extra year of education at levels where important national examinations are completed. Moreover, higher quantiles systematically enjoy greater incremental welfare to education levels between Grade 8 to completed Advanced level examinations. Both these effects happen partly via the labour market, as labour market returns to employment display similar trends. The first finding suggests that credentials are important in the labour market. The second finding suggests that individuals in the upper quantiles probably have better quality education as well as social and analytical skills that complement formal education, enabling them to earn higher returns for their education.

Suggested Citation

  • Rozana Himaz & Harsha Aturupane, 2011. "Education and Household Welfare in Sri Lanka from 1985 to 2006," Economics Series Working Papers 527, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:527
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    File URL: http://www.economics.ox.ac.uk/materials/working_papers/paper527.pdf
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    References listed on IDEAS

    as
    1. Dreze, Jean & Kingdon, Geeta Gandhi, 2001. "School Participation in Rural India," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 1-24, February.
    2. Rozana Himaz, 2010. "Intrahousehold Allocation of Education Expenditure: The Case of Sri Lanka," Economic Development and Cultural Change, University of Chicago Press, vol. 58(2), pages 231-258, January.
    3. Indunil De Silva, 2009. "Ethnicity and sheepskin effects in the returns to education in Sri Lanka: A conditional quantile analysis," International Journal of Development Issues, Emerald Group Publishing, vol. 8(1), pages 61-79, June.
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    Cited by:

    1. Kumara, Ajantha Sisira, 2015. "Wage Differentials in Sri Lanka: The case of a post-conflict country with a free education policy," MPRA Paper 68068, University Library of Munich, Germany, revised 25 Nov 2015.
    2. Jamal, Haroon, 2015. "Private Returns to Education in Pakistan: A Statistical Investigation," MPRA Paper 70640, University Library of Munich, Germany.

    More about this item

    Keywords

    Sri Lanka; education; welfare quantile regression; returns;

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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