Journal Article

Heterogeneity in Returns to Investment in Education in Egypt

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collection.link.125
https://openknowledge.worldbank.org/handle/10986/4401
collection.name.125
C. Journal articles published externally
dc.contributor.author
Herrera, Santiago
dc.contributor.author
Badr, Karim
dc.date.accessioned
2013-10-17T16:34:57Z
dc.date.available
2013-10-17T16:34:57Z
dc.date.issued
2013-09-25
dc.date.lastModified
2021-04-23T14:03:27Z
dc.description.abstract
The paper estimates the rates of return to investment in education in Egypt, allowing for multiple sources of heterogeneity across individuals. The paper finds that, in the period 1998–2006, returns to education increased for workers with higher education, but fell for workers with intermediate education levels; the relative wage of illiterate workers also fell in the period. This change can be explained by supply and demand factors. On the supply side, the number workers with intermediate education, as well as illiterate ones, outpaced the growth of other categories joining the labor force during the decade. From the labor demand side, the Egyptian economy experienced a structural transformation by which sectors demanding higher-skilled labor, such as financial intermediation and communications, gained importance to the detriment of agriculture and construction, which demand lower-skilled workers. In Egypt, individuals are sorted into different educational tracks, creating the first source of heterogeneity: those that are sorted into the general secondary-university track have higher returns than those sorted into vocational training. Second, the paper finds that large-firm workers earn higher returns than small-firm workers. Third, females have larger returns to education. Female government workers earn similar wages as private sector female workers, while male workers in the private sector earn a premium of about 20 percent on average. This could lead to higher female reservation wages, which could explain why female unemployment rates are significantly higher than male unemployment rates. Formal workers earn higher rates of return to education than those in the informal sector, which did not happen a decade earlier. And finally, those individuals with access to technology (as proxied by personal computer ownership) have higher returns.
en
dc.identifier.citation
Middle East Development Journal
dc.identifier.issn
1793-8120
dc.identifier.uri
http://hdl.handle.net/10986/16185
dc.language.iso
en_US
dc.publisher
World Scientific
dc.rights
CC BY-NC-ND 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subject
returns to education
dc.subject
firm size
dc.subject
gender
dc.subject
access to technology
dc.subject
formality
dc.subject
education
dc.title
Heterogeneity in Returns to Investment in Education in Egypt
en
dc.type
Journal Article
en
okr.date.disclosure
2013-09-25
okr.doctype
Publications & Research :: Journal Article
okr.doctype
Publications & Research
okr.externalcontent
External Content
okr.globalpractice
Education
okr.googlescholar.linkpresent
yes
okr.language.supported
en
okr.peerreview
Academic Peer Review
okr.region.administrative
Middle East and North Africa
okr.region.country
Egypt, Arab Republic of
okr.relation.associatedurl
https://openknowledge.worldbank.org/handle/10986/3503
okr.relation.associatedurl
http://www.worldscientific.com/worldscinet/medj
okr.sector
Education
okr.topic
Education :: Access & Equity in Basic Education
okr.topic
Education :: Education For All
okr.topic
Education :: Lifelong Learning
okr.topic
Teaching and Learning
okr.unit
Poverty Reduction and Economic Management Unit, Middle East and North Africa Region
okr.volume
5(3)

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