2019
DOI: 10.2478/zireb-2019-0009
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Returns to Education in South Africa: Evidence from the National Income Dynamics Study

Abstract: We utilize two waves of the National Income Dynamics Study in South Africa to estimate the returns to education in 2010 and 2012. We find that during this time period the returns to education were approximately 18% per year of education and that the returns were higher for females relative to males and higher for those living in urban relative to rural areas. The policy implications include a suggestion to continue investment in educational infrastructure, especially in rural areas, so as to increase the retur… Show more

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Cited by 7 publications
(5 citation statements)
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References 27 publications
(24 reference statements)
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“…Anim and Mensah (2015) further added that higher education is a part of the service industry because the primary focus of tertiary institutions is to provide a quality learning experience to students, and its secondary purpose is to meet the industry's needs for skills and knowledge. The HEIs are one of the fastest-expanding sectors worldwide to which increasing attention has been paid recently due to their significantly strengthening economic impacts and growing business-like features (Depken et al, 2019). In today's dynamic and competitive JIEB 17,2 higher education sector, ESQ is a critical determinant of the success of HEIs as a service sector (Sandhu and Bala, 2011).…”
Section: Theoretical and Practical Implicationsmentioning
confidence: 99%
“…Anim and Mensah (2015) further added that higher education is a part of the service industry because the primary focus of tertiary institutions is to provide a quality learning experience to students, and its secondary purpose is to meet the industry's needs for skills and knowledge. The HEIs are one of the fastest-expanding sectors worldwide to which increasing attention has been paid recently due to their significantly strengthening economic impacts and growing business-like features (Depken et al, 2019). In today's dynamic and competitive JIEB 17,2 higher education sector, ESQ is a critical determinant of the success of HEIs as a service sector (Sandhu and Bala, 2011).…”
Section: Theoretical and Practical Implicationsmentioning
confidence: 99%
“…The economy is constrained by the scarcity of skilled workers (Depken et al, 2019). The supply of university and post-secondary graduates remain limited.…”
Section: Expanding Access To Higher Educationmentioning
confidence: 99%
“…Where data for both stunting rates and ASRs are available, the average of the improvements in productivity associated with both health measures is applied in the health component of the HCI, as noted in Equation (4.1). In Equation (3.1), 14 is the maximum number of years of school enrolled for from 7 In the South African context, a standard 8% earnings return to education may underestimate the returns, with Depken et al (2019) highlighting approximately 18% as an accurate estimate of returns per year of education attained in South Africa. The estimation approach included by Depken et al (2019) included ordinary least squares (OLS) and instrumental variables (IV).…”
Section: Index Framework and Variablesmentioning
confidence: 99%
“…In Equation (3.1), 14 is the maximum number of years of school enrolled for from 7 In the South African context, a standard 8% earnings return to education may underestimate the returns, with Depken et al (2019) highlighting approximately 18% as an accurate estimate of returns per year of education attained in South Africa. The estimation approach included by Depken et al (2019) included ordinary least squares (OLS) and instrumental variables (IV). Furthermore, in comparison to primary school attainment, van Broekhuizen (2011) estimated high and increasing rates of return to higher education, noting that secondary schooling, matric, bachelor's degree and postgraduate degree attainment had 13%, 35%, 115% and 180% average earnings returns relative to primary schooling respectively.…”
Section: Index Framework and Variablesmentioning
confidence: 99%