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Estimating Returns to Education in Off-Farm Activities in Rural Ethiopia

Philip Verwimp ()

Ethiopian Journal of Economics, 1999, vol. 05, issue 2, 101

Abstract: I have used an extended version of Mincer's original model to estimate the returns to schooling in rural Ethiopia. In a first step a multinomial log it model is applied to distinguish between for groups of people,(1) full-time farmers, (2) part-time farmers and part-time wage workers,(3) part-time farmers and part-time traders and (4) full-time non-farmers. In a second step, a correction for sample selectivity is made using the Lee-Heckman method and the returns are estimated. The results show that returns on schooling are high in group (4)and lower in groups(2) and (3). Entry in well-paid jobs is constrained for non-educated people. Women are particularly well represented in the third group but strongly underrepresented in the fourth group. The estimation shows overall that education is a worthwhile investment in rural Ethiopia and the fact that households under invest in education can be attributed to the lack of resources at the household level.

Keywords: Community/Rural/Urban Development; Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Date: 1999
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Working Paper: Estimating Returns to Education in Off-Farm Activities in Rural Ethiopia (1999) Downloads
Working Paper: Estimating Returns to Education in Off-Farm Activities in Rural Ethiopia (1999) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eeaeje:251803

DOI: 10.22004/ag.econ.251803

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