Private rates of return to education of Africans in South Africa for 1995: a Double Hurdle model

Philip AE Serumaga-Zake and Willem Naude

Development Southern Africa, 2003, vol. 20, issue 4, 515-528

Abstract: In this study, the private rates of return to education of African males and females in South Africa are estimated. Both Heckman's (1976) two-stage selection model and the more recent Double Hurdle model, with correlated errors between the participation and employment equations, is found to be more suitable for the earnings analysis than the one with uncorrelated errors. This might imply that people make the decisions to participate in the labour force and to take up a job offer simultaneously. The private rate of return to education of Africans is found to be 12 and 11 per cent for males and females, respectively. These rates are significantly higher than those found in previous analyses of rates of return to education in South Africa. In these older studies, the private rate of return to education of Africans was found to vary from 2,5 to 7,7 per cent.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0376835032000124510 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:deveza:v:20:y:2003:i:4:p:515-528

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CDSA20

DOI: 10.1080/0376835032000124510

Access Statistics for this article

Development Southern Africa is currently edited by Marie Kirsten

More articles in Development Southern Africa from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().