Location of Repository

Is Education More Benficial to the Less Able? Econometric Evidence from Ethiopia

By Sourafel Girma and Abbi Mamo Kedir

Abstract

The paper investigates whether returns to schooling in Ethiopia vary according to the ability of individuals. To do so it adopts an instrumental variables quantile regression framework that allows for both endogeneity of schooling resulting from unmeasured ability, and possible heterogeneity in the impact of schooling. The empirical estimates indicate that education contributes more to the earnings of the less able individuals, consistent with the notion that education and ability are substitutes. By contrast, the relatively low (but still economically significant) returns to education at the higher end of the conditional earnings distribution suggest the importance of inherent ability or personal connections in securing high paying jobs

Topics: returns to schooling, quantile regression
Publisher: Dept. of Economics, University of Leicester
Year: 2003
OAI identifier: oai:lra.le.ac.uk:2381/4408

Suggested articles

Preview

Citations

  1. (2000). Education Matters: Selected Essays by
  2. Education returns across quantiles of the wage function: Aternative explanations for returns to education by race in South Africa.
  3. (2001). Education, Incomes and Poverty in Uganda in the 1990s.
  4. (2001). Estimating the return to schooling: progress on some persistent econometric problems, doi
  5. (1977). Estimating the Returns to Schooling: Some Econometric Problems, doi
  6. (1996). Family background, education and employment in urban Ethiopia, doi
  7. (1998). Income, schooling, and ability: Evidence from a new sample of identical twins. doi
  8. (2001). Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins’ data, doi
  9. (1993). Information, Learning and Wage Returns in Low-Income Rural Areas. doi
  10. (1996). Rates of Return to Education: does the Conventional Pattern Prevail in Sub-Saharan Africa? World Development, doi
  11. Recent advances in quantile regression models,
  12. (1978). Regression quantiles. doi
  13. (1985). Returns to Education: A Further International Update and Implications. doi
  14. (1994). Returns to Investment in Education: a global update. doi
  15. (2000). Sheepskin Effects in the Returns to Education: doi
  16. (1999). The Causal Effect of Education on Earnings, doi
  17. (1998). The Urban Labour Market During Structural Adjustment: Ethiopia 1990-1997. Centre for the Study of African Economies,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.