Returns to schooling in Ethiopia: The case of the formal Sector

Course ID
Ethiopian Economics Association (EEA)
Wolday Amha

The main objective of this study is to examine and estimate the returns to schooling in one state-waned enterprise i.e. Edget cotton factory, and one private enterprise i.e. MOENCO, both belonging to the formal sector in Ethiopia. The earning function was employed to estimate the returns to schooling using primary and secondary sources of information. The main findings of the study are. (a) human capital variables(education and experience), as estimated by the standard rate of return, are most important in influencing wages in the two enterprises: (b) the. Mincerian rates of return to primary junior secondary, senior secondary, diploma- certificate, and above diploma levels in edjet . factory are 3.3% ,55% 2.8% ,18.3% and 11.3% respectively. The mincerian regression coefficients, associated with primary education, although positive and significant, do not conform with global patterns observed by psacharopoulos (1994) who estimated highest returns to primary education, (c) for the same level of educational attainment, males had higher average wages than females in Edjet factory. Females, though having more experience within the industry, had less experience outside of the industry and occupied lower – status jobs, (d) rates of return estimated using comparative 1985 and 1996 data for Edget factory also reveal that women were paid less in 1996 compared to 1985 suggesting that their situation in the factory has deteriorated over time. But, for both males and females, a one-year increase in education increased wages from about 9% in 1985 to about 56% in 1996

Corporate Author:Senait Seyoum and alemayehu Seyoum (editors) , Ethiopian Economic Association(EEA), Departments of Economics of AAU & Fredrich Ebert Stifung
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Human capital

Secondary Descriptor:formal Sector

Geographic Descriptors:Ethiopia
Cataloge Date:02/27/2013
Broad Subject heading:Education (Secondary) – Economic aspect
Call Number:338.963 PRO 1998
Serial Key Title:Proceedings of the Seventh Annual conference on the Ethiopian economy
Publication catagory:Annual conference
Content type:EEA Publication
Publication date:2013-02-27 15:58:13
Forum or Discussion date:2013-02-27 15:58:13
Conference Place:Nov. 28 – 30, 1997, Nazareth, Ethiopia
Place of publication:Addis Ababa, Ethiopia
Type of material:Book
Current frequency:Annualy
Thematic area:Human resource Development in Ethiopia
Author: Wolday Amha

Upcoming Events


Call For Paper 18 International Conference

8:00 am - 8:00 amEEA Head Office

Ethiopian Journal of Economics

8:00 am - 5:00 pmEEA Head Office

Ethiopia’s Homegrown Economic Reform Agenda

8:00 am - 5:00 pmIntercontinental Hotel

Tenth Annual Conference

8:00 am - 5:00 pmHomeland hotel conference hall