The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing
No Thumbnail Available
Date
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oxford
Abstract
Description
We use micro data on manufacturing employees in Kenya and Tanzania to estimate returns to
education and investigate the shape of the earnings function in the period 1993-2001. In
Kenya, there have been long run falls in the returns to education while for Tanzania there is
evidence of rising returns in the 1990s. The earnings functions are convex for both countries
and this result is robust to endogeneity. Convexity may be part of the explanation as to how
rapid expansion of education in Africa has generated so little growth if expansion has been
concentrated at lower levels of education.
Keywords
Returns to education, Africa, Kenya, Tanzania, manufacturing