An Update of the Returns to Education in Kenya: Accounting both endogeneity and sample selection biases
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AbstractThe study is latest to estimate returns to education after the introduction of free primary
education in 2003 in Kenya, simultaneously addressing two sources of biases due to endogeneity of
schooling and earnings, and sample selection. Using the 2005-2006 Kenya Integrated Household and
Budget Survey, the paper finds that (a) returns to additional year of schooling are 14.9% for males and
13.5% for females with a continuous education variable, but the returns to females are consistently higher
than males when returns are estimated by level of education, (b) returns to education increases for higher
levels of education i.e., the classical pattern of diminishing return to schooling does not hold true for both
males and females in Kenya, and (c) the use of joint IV-Heckman method adjust the endogeneity and
sample selection biases introduced by OLS and IV.
All Author(s) ListKentaro Shimada, Zeba Khan, Suguru Mizunoya, Ayako Wakano
Journal nameDiscussion Papers in Economics and Business
PublisherGraduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
Pages16 - 18
LanguagesEnglish-United Kingdom
KeywordsReturns to Education, Education Policy, Human Capital, Gender, Kenya

Last updated on 2018-20-01 at 18:42