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Human Capital Externalities and Private Returns to Education in Kenya

Damiano Kulundu Manda, Germano Mwabu and Mwangi Samson Kimenyi
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Damiano Kulundu Manda: Kenya Institute for Public Policy Analysis (KIPPRA)
Germano Mwabu: Kenya Institute for Public Policy Analysis (KIPPRA)

No 2004-08, Working papers from University of Connecticut, Department of Economics

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.

Keywords: Human capital externality; returns to education; earnings; Kenya (search for similar items in EconPapers)
JEL-codes: I20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev, nep-edu, nep-lab and nep-ure
Date: 2004-04
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Journal Article: Human Capital Externalities and Private Returns to Education in Kenya (2006) Downloads
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