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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Returns to Education in South Africa: Evidence from the Machibisa Township
Authors:Fryer, David
Vencatachellum, Desire
Periodical:African Development Review
Geographic terms:South Africa
Subjects:cost-benefit analysis
primary education
secondary education
women's employment
Education and Oral Traditions
Labor and Employment
Women's Issues
Education and Training
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1017-6772.2006.00126.x/pdf
Abstract:For a long time, there was a consensus that returns to primary education are high across all developing countries (G. Psacharopoulos and H.A. Patrinos, 2002). However, recent evidence is starting to point to the contrary in much of sub-Saharan Africa. The present authors contribute to this literature by using the institutional characteristics of South Africa. They start by developing a theoretical model to derive conditions under which black workers in the private sector earn no returns to education. Using a sample of black females in Machibisa township in the late apartheid KwaZulu (1990), so as to control for labour market specific effects, they find that more that a fifth of labour market participants are self-employed. They find no returns to primary education and positive returns for the first two years of secondary education. Further education allows females to find employment in the government sector where they earn a wage premium. Only secondary education is a predictor of earnings status, and new migrants are most likely to be unemployed. App., bibliogr., notes, ref., sum. in English and French. [Journal abstract]