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Human Capital Externalities and Private Returns to Education in Kenya

  • 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)

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.

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Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2004-08.

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Length: 32 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:uct:uconnp:2004-08
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Web page: http://www.econ.uconn.edu/

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