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Returns to Education in South Africa: Evidence from the Machibisa Township
Author(s) -
Fryer David,
Vencatachellum Désiré
Publication year - 2005
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/j.1017-6772.2006.00126.x
Subject(s) - library science , history , management , sociology , economics , computer science
We develop a model where blacks in the private sector earn no returns to education if there are relatively too few educated blacks. Using a sample of black females in the late apartheid Kwa Zulu to control for labor market specific effects, we find that more that a fifth of labor market participants are self employed. There are no returns to primary education and positive returns for the first two years of secondary education. Further education allow females to find employment in the government sector where they earn a wage premium. Only secondary education is a predictor of earnings status, and new migrants are most likely to be unemployed. Our analysis therefore contributes to challenging the consensus on high returns to primary education in developing countries. JEL Classification: D45, L10