Education and earnings in urban West Africa
Date
2009
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Abstract
Using a series of comparable labor force surveys in urban West Africa, we estimate the
private returns to education among representative samples of workers in seven economic
capitals (Abidjan, Bamako, Cotonou, Dakar, Lome, Niamey and Ouagadougou). The data
allow us to provide a unique cross-country comparison using rigorously the same variables
and methodology for each country. We tackle the issues of endogenous sector allocation
(public, formal private and informal sectors) and endogeneity of the education variable
in the earnings functions. We find that the returns to schooling are most often enhanced
once an endogenous education variable is accounted for. This effect holds particularly true
in the informal sector. In most West African cities of our sample, the public sector gives
more value to education, followed by the formal private sector and then the informal sector.
We also shed light on convex returns to education in all the cities and sectors, including
in informal activity. More generally, a major contribution of this paper is to provide evidence
of significant effects of education on individual earnings in the informal sectors of
the West African cities, even at high levels of schooling. Journal of Comparative Economics
37 (3) (2009) 491–515. IRD, DIAL, France; CEPS/INSTEAD, Luxembourg.
Description
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Journal Article (peer-reviewed)
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Text
Keywords
RETURNS TO EDUCATION, EARNINGS FUNCTIONS, ENDOGENEITY OF SCHOOLING, INFORMAL SECTOR, WEST AFRICA, URBAN AREAS, MANPOWER, RECURRENT EDUCATION, INCOME GENERATION
Citation
Kuepie, K., Nordman, C. J., & Roubaud, F. (2009). Education and earnings in urban West Africa. Journal of Comparative Economics, 37, 491-515. doi:10.1016/j.jce.2008.09.007