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Returns to Education in South Africa: Evidence from the National Income Dynamics Study

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  • Craig Depken Chanda Chiseni Ernest Ita

    (UNC Charlotte, Charlotte, NC, USA. Lund University, Lund, Sweden. Department of Economics, UNC Charlotte, Charlotte, NC, USA.)

Abstract

We utilize two waves of the National Income Dynamics Study in South Africa to estimate the returns to education in 2010 and 2012. We find that during this time period the returns to education were approximately 18% per year of education and that the returns were higher for females relative to males and higher for those living in urban relative to rural areas. The policy implications include a suggestion to continue investment in educational infrastructure, especially in rural areas, so as to increase the returns to education in those areas. JEL Classification: I26, J31

Suggested Citation

  • Craig Depken Chanda Chiseni Ernest Ita, 2019. "Returns to Education in South Africa: Evidence from the National Income Dynamics Study," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 22(1), pages 1-12, May.
    • Handle: RePEc:zag:zirebs:v:22:y:2019:i:1:p:1-12
    DOI: 10.2478/zireb-2019-0009
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    References listed on IDEAS

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    More about this item

    Keywords

    instrumental variables; Mincer equations; developing countries;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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