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Human Capital Externalities and Private Returns to Education in Kenya

Author

Listed:
  • Damiano Kulundu Manda

    (Kenya Institute for Public Policy Analysis (KIPPRA))

  • Germano Mwabu

    (Kenya Institute for Public Policy Analysis (KIPPRA))

  • Mwangi S. Kimenyi

    (University of Connecticut)

Abstract

We use micro data to analyse the effect of human capital externality on earnings and private returns to education. The earnings equations are estimated using the OLS method for a sample of full-time workers. The results show that human capital has a positive effect on earnings, indicating that an increase in education benefits all workers. However, men benefit more from women's education than the women do from men's. The effects of human capital externality on private returns to schooling are shown to vary substantially between rural and urban areas and across levels of the education system.

Suggested Citation

  • Damiano Kulundu Manda & Germano Mwabu & Mwangi S. Kimenyi, 2004. "Human Capital Externalities and Private Returns to Education in Kenya," Working papers 2004-08, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:2004-08
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    References listed on IDEAS

    as
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    Cited by:

    1. Bansha Dulal, H. & Foa, R., 2011. "Social Institutions as a Form of Intangible Capital," ISD Working Paper Series 2011-01, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. World Bank Group, 2016. "Kenya Country Economic Memorandum," World Bank Other Operational Studies 24008, The World Bank.
    3. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
    4. Mwangi S. Kimenyi & Francis M. Mwega & Njuguna S.Ndung.u, 2015. "The African Lions: Kenya country case study," WIDER Working Paper Series 134, World Institute for Development Economic Research (UNU-WIDER).
    5. Abdoulaye Diagne & Bity Diene, 2011. "Estimating Returns to Higher Education: A Survey of Models, Methods and Empirical Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 20(suppl_3), pages -132, August.
    6. Ogundari, Kolawole, 2012. "Returns to Education Revisited and Effects of Education on Household Welfare in Nigeria," 2012 Conference, August 31, 2012, Nelson, New Zealand 136051, New Zealand Agricultural and Resource Economics Society.
    7. World Bank, 2008. "Kenya : Accelerating and Sustaining Inclusive Growth," World Bank Other Operational Studies 18927, The World Bank.
    8. Rob Vos & Arjun Bedi & Paul K. Kimalu & Damiano K. Manda & Nancy N. Nafula & Mwangi S. Kimenyi, 2004. "Achieving Universal Primary Education: Can Kenya Afford it?," Working papers 2004-47, University of Connecticut, Department of Economics.
    9. Chege, By Mwangi, 2015. "Re-inventing Kenya’s university: From a “Graduate-mill” to a development-oriented paradigm," International Journal of Educational Development, Elsevier, vol. 44(C), pages 21-27.
    10. Brent Robert J., 2013. "A cost-benefit framework for evaluating conditional cash-transfer programs," Journal of Benefit-Cost Analysis, De Gruyter, vol. 4(2), pages 159-180, August.
    11. repec:jfr:ijfr11:v:8:y:2017:i:3:p:85-104 is not listed on IDEAS
    12. World Bank, 2009. "Kenya - Poverty and Inequality Assessment : Executive Summary and Synthesis Report," World Bank Other Operational Studies 3081, The World Bank.

    More about this item

    Keywords

    Human capital externality; returns to education; earnings; Kenya;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General

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