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Estimating Returns to Education in Off Farm Activities in Rural Ethiopia


<p><em>I have used an extended version of Mincer&#39;s original model to estimate the returns to schooling in rural Ethiopia. In a first step a multinomial log it model is applied to distinguish between for groups of people,(1) full-time farmers, (2) part-time farmers and part-time wage workers,(3) part-time farmers and 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 overall that education is a worthwhile investment in rural Ethiopia and the fact that households under invest in education can be attributed to the lack of resources at the household level.</em></p>

Corporate Author: 
Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Ethiopian Economic Association (EEA)
Primary Descriptors: 

<p>Adult education</p>

Secondary Descriptor: 


Geographic Descriptors: 
Cataloge Date: 
Broad Subject heading: 
Fundamental education
Call Number: 
330.05 ETH JOU
Serial Key Title: 
Ethiopian Journal of Economics
Publication catagory: 
Content type: 
October, 1996
Publication date: 
1996-03-02 00:00:00
Forum or Discussion date: 
2013-03-02 00:00:00
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Serial (Journal)
Current frequency: