Wage Premia for Education and Location, by Gender and Race in South Africa

Yale University Economic Growth Center Paper No. 785

Posted: 27 Jan 1999

See all articles by T. Paul Schultz

T. Paul Schultz

Yale University - Economic Growth Center; IZA Institute of Labor Economics

Germano Mwabu

University of Nairobi - Department of Economics

Date Written: February 1998

Abstract

Despite the lower quality of education provided Africans compared with whites in South Africa, the percentage wage gains associated with additional years of primary, secondary, and higher education are substantially larger for Africans than for whites in 1993, and they increase for both race groups at higher levels of education. The lower quantity (or political quotas) of education received by Africans rather than whites is a simple explanation for the wage structure documented in this paper. The other two racial groups, colored (mixed races) and Indians, occupy intermediate positions between whites and Africans in terms of both the quantity of education. As barriers to employment by race are dismantled in South Africa, wage differences between races are likely to diminish, while wage differences within race groups may well widen. Quantitative expansion of educational opportunities for non-whites at the secondary and higher education levels seems to be overdue.

JEL Classification: J31, I21, H52

Suggested Citation

Schultz, T. Paul and Mwabu, Germano, Wage Premia for Education and Location, by Gender and Race in South Africa (February 1998). Yale University Economic Growth Center Paper No. 785, Available at SSRN: https://ssrn.com/abstract=112509

T. Paul Schultz (Contact Author)

Yale University - Economic Growth Center ( email )

Box 208269
New Haven, CT 06520-8269
United States
203-432-3620 (Phone)
203-432-5591 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Germano Mwabu

University of Nairobi - Department of Economics ( email )

P.O. Box 30197
Nairobi
Kenya
2542226451 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
720
PlumX Metrics