Evaluating private returns to education investment in Uganda: A gender perspective

抄録

The study evaluates the labor market dynamics in Uganda by first; estimating the average wage earnings for each education level taking into account family and community factors. Second, estimate the private rates of return to education at each education level for male and female. Using the Heckman two-step procedure, Hausman two-step algorithm and Instrumental Variable 2SLS estimation methods on UNHS 2005/06 data, the study establishes that male and urban individuals are more likely to seek to work than female and rural counterparts. The married women were less likely to seek for wage employment. Further, rural women with basic education get higher returns than the urban counterparts. Overall, there are higher rates of return for higher levels of education for both male and female. From the gender perspective, the results indicate that the economic returns for male significantly increase with experience, and female public workers receive high returns as compared to those in private employment. It is possible that variations in opportunities to schooling may influence education quality outcomes and the level of participation in the labor market. Thus, a decomposition of the wage component by gender implies that it is important to invest in boys’ and girls’ higher education in order to reap higher economic returns.