Family Background, Education and Earnings in Kenya

Anthony Wambugu
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Anthony Wambugu: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

No 76, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: This paper uses data collected in 2000 to first estimate OLS and ordered probit models to measure correlation between family background and workers’ education. Then, human capital earnings functions are estimated to examine to what extent family background accounts for observed correlation between workers’ education and earnings. Subsequently, it estimates returns to education with education treated as endogenous. Having well-educated parents is associated with greater educational attainment and earnings. Returns to education decline slightly when parents’ education controls are in the earnings function. Instrumental variable estimation or self-selection correction suggests that estimates of returns to education may be larger than conventional estimates suggest.

Keywords: Earnings function; return to education; instrumental variables (search for similar items in EconPapers)
JEL-codes: I21 J24 J31 O15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2002-06-20
New Economics Papers: this item is included in nep-afr, nep-dev and nep-lab
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Citations: View citations in EconPapers (2)

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