Why does the productivity of education vary across individuals in Egypt ? firm size, gender, and access to technology as sources of heterogeneity in returns to education
The paper estimates the rates of return to investment in education in Egypt, allowing for multiple sources of heterogeneity across individuals. The paper finds that, in the period 1998-2006, returns to education increased for workers with higher education, but fell for workers with intermediate education levels; the relative wage of illiterate workers also fell in the period. This change can be explained by supply and demand factors. On the supply side, the number workers with intermediate education, as well as illiterate ones, outpaced the growth of other categories joining the labor force during the decade. From the labor demand side, the Egyptian economy experienced a structural transformation by which sectors demanding higher-skilled labor, such as financial intermediation and communications, gained importance to the detriment of agriculture and construction, which demand lower-skilled workers. In Egypt, individuals are sorted into different educational tracks, creating the first source of heterogeneity: those that are sorted into the general secondary-university track have higher returns than those sorted into vocational training. Second, the paper finds that large-firm workers earn higher returns than small-firm workers. Third, females have larger returns to education. Female government workers earn similar wages as private sector female workers, while male workers in the private sector earn a premium of about 20 percent on average. This could lead to higher female reservation wages, which could explain why female unemployment rates are significantly higher than male unemployment rates. Formal workers earn higher rates of return to education than those in the informal sector, which did not happen a decade earlier. And finally, those individuals with access to technology (as proxied by personal computer ownership) have higher returns.
|Date of creation:||01 Jul 2011|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Therry Lallemand & François Rycx, 2006.
"Establishment Size and the Dipsersion of Wages: Evidence from european Countries,"
Applied Economics Quarterly (formerly: Konjunkturpolitik),
Duncker & Humblot, Berlin, vol. 52(4), pages 309-336.
- Thierry Lallemand & François Rycx, 2005. "Establishment size and the dispersion of wages: evidence from European Countries," DULBEA Working Papers 05-18.RS, ULB -- Universite Libre de Bruxelles.
- Thierry Lallemand & François Rycx, 2006. "Establishment size and the dispersion of wages: evidence from European Countries," ULB Institutional Repository 2013/8739, ULB -- Universite Libre de Bruxelles.
- Lallemand, Thierry & Rycx, Francois, 2005. "Establishment Size and the Dispersion of Wages: Evidence from European Countries," IZA Discussion Papers 1778, Institute for the Study of Labor (IZA).
- François Rycx & Thierry Lallemand, 2006. "Establishment size and the dispersion of wages: evidence from European Countries," ULB Institutional Repository 2013/245698, ULB -- Universite Libre de Bruxelles.
- Kahyarara, Godius & Teal, Francis, 2008. "The Returns to Vocational Training and Academic Education: Evidence from Tanzania," World Development, Elsevier, vol. 36(11), pages 2223-2242, November.
- Godius Kahyarara & Francis Teal, 2008. "The returns to vocational training and academic education: Evidence from Tanzania," CSAE Working Paper Series 2008-07, Centre for the Study of African Economies, University of Oxford.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
- Mark R. Rosenzweig, 2010. "Microeconomic Approaches to Development: Schooling, Learning, and Growth," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 81-96, Summer.
- Rosenzweig, Mark R., 2010. "Microeconomic Approaches to Development: Schooling, Learning, and Growth," Working Papers 79, Yale University, Department of Economics.
- Mark R. Rosenzweig, 2010. "Microeconomic Approaches to Development: Schooling, Learning, and Growth," Working Papers 985, Economic Growth Center, Yale University.
- Pereira, Pedro Telhado & Martins, Pedro Silva, 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," FEUNL Working Paper Series wp379, Universidade Nova de Lisboa, Faculdade de Economia.
- Pereira, Pedro T. & Martins, Pedro S., 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," IZA Discussion Papers 120, Institute for the Study of Labor (IZA).
- Pereira, Pedro Telhado & Martins, Pedro Silva, 2002. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," Discussion Papers 709, The Research Institute of the Finnish Economy.
- Barrera-Osorio, Felipe & Linden, Leigh L., 2009. "The use and misuse of computers in education : evidence from a randomized experiment in Colombia," Policy Research Working Paper Series 4836, The World Bank.
- World Bank, 2011. "Can Computers Help Students Learn?," World Bank Other Operational Studies 10455, The World Bank.
- Christine Binzel & Ragui Assaad, 2009. "The Impact of International Migration and Remittances on the Labor-Supply Behavior of Those Left behind: Evidence from Egypt," Discussion Papers of DIW Berlin 954, DIW Berlin, German Institute for Economic Research. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5740. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.