Effect of Human Capital Development on Household Income Growth in Burkina Faso: An Analysis Through a Decomposition Method

Alain Siri () and Omer Combary
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Alain Siri: Institute of Social Sciences, National Center for Scientific and Technological Research (CNRST), Ouagadougou 03 BP 7047, Burkina Faso
Omer Combary: Department of Economics, Thomas Sankara University, Ouagadougou 06 BP 9545, Burkina Faso

Economies, 2025, vol. 13, issue 7, 1-16

Abstract: The paper analyses the relationship between human capital formation and income growth in Burkina Faso using data from household surveys conducted in 2009 and 2018. By combining estimates from multiple linear regressions of the impact of human capital variables on income with variance decomposition techniques, this paper quantifies the contribution of education, health, underemployment, and dietary diversity to income growth. It distinguishes between the shares related to the effects of increasing capital factor endowments and those related to the returns on these endowments. The results demonstrate that an increase in human capital endowment is a key factor in determining workers’ income growth. Furthermore, the impact of human capital on income growth is greater when the endowment and return effects of these factors are both positive and high. These results also indicate that a significant improvement in household income is more likely to be achieved by interventions focused on both increasing human capital endowments and improving human capital outcomes.

Keywords: human capital; Oaxaca–Blinder; decomposition methods; income growth; prosperity (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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