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The Effect of the Universal Primary Education Program on Labor Market Outcomes: Evidence from Tanzania

Esther Delesalle ()
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Esther Delesalle: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)

No 2019010, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The purpose of this article is to study the effect of education on labor market participation and household consumption in a rural environment. The Tanzanian Universal Primary Education (UPE) program, which provides variations in education across locations and over time, is used as a natural experiment. Exploiting these two exogenous variations to instrument education, I find that education increases household consumption, especially in agriculture and in nonfarm self-employment activities. I also provide evidence that education increases the probability of working in agriculture. These results, initially surprising, suggest that returns to education in agriculture are positive, provided that the skills taught at school are suitable for agriculture.

Keywords: Human capital investment; returns to education; labor market organization; schooling reforms; Tanzania (search for similar items in EconPapers)
JEL-codes: I2 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2019-04-24
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2019010

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