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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Returns to education in the manufacturing sector in Zimbabwe: some empirical evidence
Author:Godana, Tekaligne
Periodical:South African Journal of Economics
Geographic term:Zimbabwe
Subjects:skilled workers
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.1997.tb01353.x/pdf
Abstract:The labour market for educated manpower has changed dramatically over the past decade. There has been such a significant devaluation of educational achievement (filtering down) that new entrants who manage to secure a job in the formal sector of the economy are unlikely to get the kind of job and payment as those who joined the labour force only a decade ago with the same educational qualifications. This paper investigates the extent of filtering down and its significance for the rate of return to education in the manufacturing sector in Zimbabwe. The sample data were collected in 1993 from 1554 workers in five different branches of the manufacturing sector in Zimbabwe. The analysis indicates that a dramatic decline in the rate of return to education has occurred in the Zimbabwean manufacturing sector mainly because new entrants with secondary education have filtered down the occupational ladder. This tendency will probably continue in the near future because of the ever-diminishing job opportunities, especially in well-paying occupations. The results also indicate the inappropriateness of average rates of return as a guideline for decisions on new investment in education, private or public. Bibliogr.