|
Addis Ababa University Libraries Electronic Thesis and Dissertations: AAU-ETD! >
Faculty of Business and Economics >
Thesis - Economics >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/123456789/994
|
| Title: | RETURNS TO SCHOOLING IN NON-FARM SELF-EMPLOYMENT (THE CASE OF SELECTED URBAN CENTERS IN ETHIOPIA) |
| Authors: | BISRAT, EJIGU |
| Advisors: | Ato Getachew Yoseph |
| Copyright: | 2002 |
| Date Added: | 8-May-2008 |
| Publisher: | Addis Ababa University |
| Abstract: | Investment in human capital has long stirred an interest geared towards investigating
whether or not it is profitable. Among such human capital variables, education has been
recognized as the most important investment in human capital for a long time. The main
objective of this study is to examine and estimate the returns to schooling in connection
with self-employment in selected urban centers in Ethiopia. Using a Mincerian earning
function and correcting for sample selection bias, the paper shows that (a) the private
average returns to a one-year increase in schooling is about 5.6%. This figure is smaller
than the global average (as estimate by Psacharopolous, 1993) by 5.4% and even by 9.4%
from the average of some developing countries. This could partially be explained by the
overall low quality of education in Ethiopia; (b) the Mincerian rates of return to primary,
secondary and higher education are 6.9%, 7.9% and 17.2%, respectively. As is apparent
from these coefficients, the highest return is derived from higher education and the lowest
return for primary education. This indicates the existence of substantial productivity
differential between college graduates and those who comes from the lower level of
education; (c) educating females is marginally more profitable than educating males. This
implies that expanding the provision of school places to cover women is not only
equitable but also economically efficient as well; (d) the coefficient of start-up capital in
the earning equation is positive and significant. It indicates that those household heads
who put higher start-up capital earn more than others. The coefficient of dummy for
service sector is also positive and significant. This implies that those household heads
who run their business in the service sector earn more than others. |
| Description: | A thesis submitted to the School of Graduate Studies of Addis Ababa University in partial fulfilment of the requirements for the degree of Master of Science in Human Resource Economics |
| URI: | http://hdl.handle.net/123456789/994 |
| Appears in: | Thesis - Economics
|
Items in the AAUL Digital Library are protected by copyright, with all rights reserved, unless otherwise indicated.
|
