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Impact of Education on Household Welfare in Nigeria

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  • Kolawole Ogundari
  • Adebayo B Aromolaran

Abstract

Human capital development, especially higher educational attainment, attaches high premium to its expected economic benefits, in form of better welfare. This study investigates the effect of educational attainment of household head on two indicators of household welfare, namely labour market earnings and household per capita total expenditure on food and non-food items in Nigeria. The study uses the Double Hurdle (DH) model and Quantile Regression (QR) to address these objectives. The empirical results show that returns to schooling are substantially higher at the tertiary level of education compared with primary, secondary, and postgraduate levels of education in Nigeria. Furthermore, additional years of tertiary education attainment by household heads was found to increase household per capita total expenditure more than additional years of primary, secondary and postgraduate education. The implication of these findings is that the improvements in economic welfare of households in Nigerian is driven more by the attainment of tertiary education by household heads, relative to other levels of education.

Suggested Citation

  • Kolawole Ogundari & Adebayo B Aromolaran, 2014. "Impact of Education on Household Welfare in Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 28(2), pages 345-364, June.
    • Handle: RePEc:taf:intecj:v:28:y:2013:i:2:p:345-364
    DOI: 10.1080/10168737.2013.811279
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    References listed on IDEAS

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    1. Francis Teal, 2001. "Education, incomes, poverty and inequality in Ghana in the 1990s," CSAE Working Paper Series 2001-21, Centre for the Study of African Economies, University of Oxford.
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    3. Rozana Himaz & Harsha Aturupane, 2011. "Education and Household Welfare in Sri Lanka from 1985 to 2006," Economics Series Working Papers 527, University of Oxford, Department of Economics.
    4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    5. Handa, Sudhanshu & Simler, Kenneth R. & Harrower, Sarah, 2004. "Human capital, household welfare, and children's schooling in Mozambique:," Research reports 134, International Food Policy Research Institute (IFPRI).
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    3. Adenuga Fabian Adekoya & Gbenro Mathew Sokunbi, 2021. "Early Marriage as a Determinant of Poverty in Nigeria," Business & Management Compass, University of Economics Varna, issue 1, pages 102-119.
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    5. Vial, Virginie & Hanoteau, Julien, 2015. "Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare," World Development, Elsevier, vol. 74(C), pages 142-157.

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