EconPapers    
Economics at your fingertips  
 

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

Philip Verwimp ()

Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: I use an extended version of Mincer's original model to estimate the returns to schooling in rural Ethiopia. In a first step, a multinomial logit model is applied to distinguish between four groups of people, (1) full-time farmers, (2) part-time farmers, part time wage workers, (3) part-time farmers, 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 that education is a worthwile investment in rural Ethiopia and the fact that households underinvest in education can be attributed to the lack of resources at the household level.

Date: 1999-03
New Economics Papers: this item is included in nep-afr, nep-edu and nep-lab
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://lirias.kuleuven.be/bitstream/123456789/501110/1/DPS9903.pdf

Related works:
Journal Article: 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
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:ete:ceswps:ces9903

Access Statistics for this paper

More papers in Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven
Bibliographic data for series maintained by library EBIB ().

 
Page updated 2022-10-02
Handle: RePEc:ete:ceswps:ces9903