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Human Capital Externalities and Private Returns to Education in Kenya

Author

Listed:
  • Mwangi S. Kimenyi

    (University of Connecticut)

  • Germano Mwabu

    (University of Nairobi)

  • Damiano Kulundu Manda

    (University of Nairobi)

Abstract

We use survey data of full-time workers in Kenya to analyse the effect of human capital externalities on earnings and private returns to education. The estimation results show that education human capital generally associates with positive externalities, indicating that an increase in education benefits all workers. However, the results reveal that men benefit more from women's education than women do from men's schooling. The effects of human capital externalities on private returns to schooling are shown to vary substantially between rural and urban areas and across primary and higher levels of education.

Suggested Citation

  • Mwangi S. Kimenyi & Germano Mwabu & Damiano Kulundu Manda, 2006. "Human Capital Externalities and Private Returns to Education in Kenya," Eastern Economic Journal, Eastern Economic Association, vol. 32(3), pages 493-513, Summer.
    • Handle: RePEc:eej:eeconj:v:32:y:2006:i:3:p:493-513
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    Cited by:

    1. Bansha Dulal, H. & Foa, R., 2011. "Social Institutions as a Form of Intangible Capital," ISD Working Paper Series 2011-01, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Kadir, Kadir & Weni Lidya, Sukma, 2019. "Returns to Education and Wages Distribution in Indonesia: A Comparison across Gender Groups," MPRA Paper 94929, University Library of Munich, Germany, revised 25 Apr 2019.
    3. World Bank Group, 2016. "Kenya Country Economic Memorandum," World Bank Publications - Reports 24008, The World Bank Group.
    4. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
    5. Mwangi S. Kimenyi & Francis M. Mwega & Njuguna S.Ndung.u, 2015. "The African Lions: Kenya country case study," WIDER Working Paper Series 134, World Institute for Development Economic Research (UNU-WIDER).
    6. Yubilianto, 2020. "Return to education and financial value of investment in higher education in Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-28, December.
    7. Cui, Ying & Martins, Pedro S., 2021. "What drives social returns to education? A meta-analysis," World Development, Elsevier, vol. 148(C).
    8. Abdoulaye Diagne & Bity Diene, 2011. "Estimating Returns to Higher Education: A Survey of Models, Methods and Empirical Evidence," Journal of African Economies, Centre for the Study of African Economies, vol. 20(suppl_3), pages -132, August.
    9. Ogundari, Kolawole, 2012. "Returns to Education Revisited and Effects of Education on Household Welfare in Nigeria," 2012 Conference, August 31, 2012, Nelson, New Zealand 136051, New Zealand Agricultural and Resource Economics Society.
    10. Brent Robert J., 2013. "A cost-benefit framework for evaluating conditional cash-transfer programs," Journal of Benefit-Cost Analysis, De Gruyter, vol. 4(2), pages 159-180, August.
    11. World Bank, 2008. "Kenya : Accelerating and Sustaining Inclusive Growth," World Bank Publications - Reports 18927, The World Bank Group.
    12. Rob Vos & Arjun Bedi & Paul K. Kimalu & Damiano K. Manda & Nancy N. Nafula & Mwangi S. Kimenyi, 2004. "Achieving Universal Primary Education: Can Kenya Afford it?," Working papers 2004-47, University of Connecticut, Department of Economics.
    13. Mwangi S. Kimenyi & Francis M. Mwega & Njuguna Ndung'u, 2015. "The African Lions: Kenya country case study," WIDER Working Paper Series wp-2015-134, World Institute for Development Economic Research (UNU-WIDER).
    14. Chege, By Mwangi, 2015. "Re-inventing Kenya’s university: From a “Graduate-mill” to a development-oriented paradigm," International Journal of Educational Development, Elsevier, vol. 44(C), pages 21-27.
    15. Losina Purnastuti & Ruhul Salim, 2015. "Externalities and the Social Return to Education in Indonesia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 53-74.
    16. repec:aer:wpaper:194 is not listed on IDEAS
    17. Xinxin Ma & Chengcheng Zhang, 2017. "Higher Education Expansion and Return to Education in China: Evidence from CGSS2005 and CGSS2013," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(3), pages 85-104, July.
    18. World Bank, 2009. "Kenya - Poverty and Inequality Assessment : Executive Summary and Synthesis Report," World Bank Publications - Reports 3081, The World Bank Group.

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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General

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