Heterogeneity in returns to schooling: Econometric evidence from Ethiopia

Sourafel Girma and Abbi Kedir

Journal of Development Studies, 2005, vol. 41, issue 8, 1405-1416

Abstract: This paper investigates whether returns to schooling in Ethiopia vary across the wage distribution 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 individuals at a lower end of the income distribution.

Date: 2005
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DOI: 10.1080/00220380500187026

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