The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing

28 Pages Posted: 13 May 2006

See all articles by Måns Söderbom

Måns Söderbom

University of Oxford - Department of Economics

Francis Teal

University of Oxford - Department of Economics

Anthony Wambugu

Göteborg University - Department of Economics and Statistics

Godius Kahyarara

University of Oxford - Department of Economics

Abstract

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.

Suggested Citation

Soderbom, Mans and Teal, Francis and Wambugu, Anthony and Kahyarara, Godius, The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing . Oxford Bulletin of Economics and Statistics, Vol. 68, No. 3, pp. 261-288, June 2006. Available at SSRN: https://ssrn.com/abstract=901664 or http://dx.doi.org/10.1111/j.1468-0084.2006.00162.x

Mans Soderbom (Contact Author)

University of Oxford - Department of Economics ( email )

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+44-(0)1865 281447 (Fax)

Francis Teal

University of Oxford - Department of Economics ( email )

Manor Road Building
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Oxford, OX1 3BJ
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Anthony Wambugu

Göteborg University - Department of Economics and Statistics ( email )

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Göteborg, 40530
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+46 31 773 4427 (Phone)
+46 31 773 1326 (Fax)

Godius Kahyarara

University of Oxford - Department of Economics

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom

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