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Quality of higher education and the labor market in developing countries: Evidence from an education reform in Senegal

  • Dorothée Boccanfuso

    ()

    (Department of economics and GRÉDI, Université de Sherbrooke)

  • Alexandre Larouche

    ()

    (Del Degan, Massé)

  • Mircea Trandafir

    ()

    (Department of economics and GRÉDI, Université de Sherbrooke)

While many studies look into the effect of primary school quality on labor market outcomes in developing countries, little is known about the effects at higher education levels. In this paper, we use the experiment provided by a large-scale education reform launched in Senegal in 2000 to examine the effects of quality improvements at the university level on the labor market outcomes of young high-skilled workers. Our estimates from a difference-in-difference model suggest that young university-educated workers have an employment rate about 12 percentage points higher after the reform as compared to older workers. In addition, we find that they are more likely to find employment in the service industry and in public or private enterprises. These estimates, which are robust to a host of robustness checks, support the idea that improvements in the quality of education reduce the mismatch between the quality of labor demanded and supplied in the high-skilled market.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1117.pdf
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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 11-17.

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Length: 38 pages
Date of creation: Nov 2011
Date of revision: May 2012
Handle: RePEc:shr:wpaper:11-17
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  1. Sudhanshu Handa & Kenneth R. Simler, 2006. "Quality or Quantity? The Supply-side Determinants of Primary Schooling in a Poor Rural Economy," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(1), pages 59-90, March.
  2. K. Pauw & M. Oosthuizen & C. Van der westhuizen, 2008. "Graduate Unemployment In The Face Of Skills Shortages: A Labour Market Paradox," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 45-57, 03.
  3. BOUDARBAT, Brahim, 2006. "Unemployment, Status In Employment And Wages In Morocco," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1).
  4. V. Joseph Hotz & Susan Williams McElroy & Seth G. Sanders, 1999. "Teenage Childbearing and Its Life Cycle Consequences: Exploiting a Natural Experiment," JCPR Working Papers 157, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. L.Guarcello & M. Manacorda & F. Rosati & J. Fares & S.Lyon & C. Valdivia, 2005. "School-to-Work Transitions in Sub-Saharan Africa: An overview," UCW Working Paper 15, Understanding Children's Work (UCW Programme).
  6. Eric Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Discussion Papers 07-034, Stanford Institute for Economic Policy Research.
  7. Behrman, Jere R. & Ross, David & Sabot, Richard, 2008. "Improving quality versus increasing the quantity of schooling: Estimates of rates of return from rural Pakistan," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 94-104, February.
  8. Pieter Serneels, 2007. "The Nature of Unemployment among Young Men in Urban Ethiopia," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 170-186, 02.
  9. Eric Hanushek, 2009. "School policy: implications of recent research for human capital investments in South Asia and other developing countries," Education Economics, Taylor & Francis Journals, vol. 17(3), pages 291-313.
  10. Esther Duflo, 2010. "The Medium Run Effects of Educational Expansion: Evidence from a Large School Construction Program in Indonesia," Working Papers id:2787, eSocialSciences.
  11. Eric A. Hanushek & Victor Lavy & Kohtaro Hitomi, 2008. "Do Students Care about School Quality? Determinants of Dropout Behavior in Developing Countries," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 69-105.
  12. Bacolod, Marigee P. & Tobias, Justin L., 2006. "Schools, school quality and achievement growth: Evidence from the Philippines," Economics of Education Review, Elsevier, vol. 25(6), pages 619-632, December.
  13. Damien Echevin & Fabrice Murtin, 2009. "What Determines Productivity in Senegal? Sectoral Disparities and the Dual Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1707-1730.
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