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Educational expansion and economic decline: returns to education in Kenya, 1978-1995

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  • Simon Appleton
  • Arne Bigsten
  • Damiano Kulundu Manda

Abstract

Educational expansion followed by economic decline in Kenya has been associated with a decline in the social return to secondary education, conventionally calculated, from 20% in 1978 to 6% in 1995. Wage benefits from primary school have fallen but returns remain unchanged because of correspondingly falls in costs. Returns to tertiary education have not fallen. The concept of expected returns to education is introduced to allow for effects of education on earnings from self-employment and on the probability of employment. These mirror conventionally calculated returns for men, but are higher for women due to large participation effects of education.

Suggested Citation

  • Simon Appleton & Arne Bigsten & Damiano Kulundu Manda, 1999. "Educational expansion and economic decline: returns to education in Kenya, 1978-1995," CSAE Working Paper Series 1999-06, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:1999-06
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    References listed on IDEAS

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    1. Simon Appleton, 2000. "Education and Health at the Household Level in Sub-Saharan Africa," CID Working Papers 33A, Center for International Development at Harvard University.
    2. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    3. Bevan, David & Collier, Paul & Gunning, Jan Willem, 1990. "Peasants and Governments: An Economic Analysis," OUP Catalogue, Oxford University Press, number 9780198286219.
    4. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    5. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
    6. Gemmell, Norman, 1996. "Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 9-28, February.
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    Cited by:

    1. Sam Jones & Thomas Pave Sohnesen & Neda Trifkovic, 2023. "Educational expansion and shifting private returns to education: Evidence from Mozambique," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1407-1428, August.
    2. Måns Söderbom & Francis Teal & Anthony Wambugu & Godius Kahyarara, 2006. "The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(3), pages 261-288, June.
    3. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
    4. Christian Zamo-Akono & Roger Tsafack Nanfosso, 2013. "Private Returns to Education in Urban Cameroon," Business and Economic Research, Macrothink Institute, vol. 3(2), pages 23-37, December.
    5. Arne Bigsten & Jörgen Levin, 2001. "Growth, Income Distribution, and Poverty," WIDER Working Paper Series DP2001-129, World Institute for Development Economic Research (UNU-WIDER).
    6. Lucas Van Der Velde & Joanna Tyrowicz & Karolina Goraus, 2013. "What is the true gender wage gap? A comparative analysis using data from Poland," Working Papers 2013-28, Faculty of Economic Sciences, University of Warsaw.
    7. Francis Teal & Måns Söderbom, 2004. "The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing," Economics Series Working Papers WPS/2003-17, University of Oxford, Department of Economics.

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    More about this item

    Keywords

    Education; rates of return; Kenya;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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