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Citation Information

Type Journal Article - The American Economic Review
Title Education returns across quantiles of the wage function: Alternative explanations for returns to education by race in South Africa
Author(s)
Volume 86
Issue 2
Publication (Day/Month/Year) 1996
Page numbers 335-339
URL http://www.jstor.org/stable/2118148
Abstract
A challenge facing the new South African government is how to expand and improve the educational opportunities of its population particularly those of the less-educated non-whites. One concern is that there be private demand to use efficiently any increase in school services. If, however, private wage returns are sufficiently high to these forms of increased education, it is expected that students and their families will compete for these services.Consequently, we start by reviewing ordinary least-squares (OLS) estimates, based on a 1993 household survey of South Africa, of the private mean wage returns on education of men within four racial groups: African (black)(75 percent), colored (mixed race) (8 percent), Indian (3 percent), and white (14 percent).' We then examine how the previous government's rationing of education to Africans may distort estimated returns and affect their future levels as the supply of educated Africans increases.

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