Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education
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 ed...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110727094819 http://hdl.handle.net/10986/3503 |
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okr-10986-3503 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO COMPUTERS BASIC EDUCATION CHILDREN CLASSROOM COMMUNICATION COMPLETION COMPULSORY EDUCATION COMPUTER SKILLS COMPUTERS IN EDUCATION CURRICULA CURRICULUM DEMAND FOR EDUCATION DISTANCE LEARNING EARLY EDUCATION EDUCATION EDUCATION ECONOMICS EDUCATION LEVEL EDUCATION SYSTEM EDUCATIONAL ATTAINMENT EDUCATIONAL LEVEL EDUCATIONAL PATHS EMPLOYEES FEMALE EDUCATION FEMALE EMPLOYMENT FEMALE GRADUATES FEMALE LABOR FEMALE LABOR FORCE FIRM SIZE GENDER DIFFERENCES GENERAL EDUCATION GENERAL SECONDARY EDUCATION GRADUATES GROUPS HIGHER EDUCATION HIGHER LEVELS OF EDUCATION HOUSEHOLD CONSUMPTION HUMAN CAPITAL ILLITERATE POPULATION ILLITERATES INFORMAL SECTOR INTERNATIONAL MIGRATION INVESTMENT INVESTMENT IN EDUCATION ITS JOB JOB TRAINING KNOWLEDGE LABOR LABOR CONTRACT LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LEARNING LEARNING PROCESS LEARNING PROGRAMS LEVEL OF EDUCATION LEVELS OF EDUCATION LOWER LEVELS OF EDUCATION MALE WORKERS MANAGEMENT MATHEMATICS ON-THE-JOB TRAINING PAPERS PARTICIPATION PARTICIPATION RATES PREVIOUS DRAFT PREVIOUS STUDIES PRIMARY EDUCATION PRIMARY LEVEL PRIVATE SECTOR PRIVATE SECTOR WORKERS QUALITY OF EDUCATION RATES OF RETURN RATES OF RETURN TO EDUCATION RETAIL TRADE RETURNS TO EDUCATION SCHOOL SCHOOL DROP SCHOOL DROP-OUT RATES SCHOOLING SCHOOLS SECONDARY CERTIFICATE SECONDARY EDUCATION SECONDARY STUDENTS SKILLED LABOR SKILLED WORKERS SKILLS SOCIAL WORK STATE-OWNED ENTERPRISES STATISTICS STUDENTS STUDIES STUDY SUBSTITUTION EFFECT TEACHERS TECHNOLOGY TRAINING UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNIVERSITY EDUCATION UNSKILLED LABOR VOCATIONAL EDUCATION VOCATIONAL TRAINING WAGE DISPERSION WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WOMEN |
| spellingShingle |
ACCESS TO COMPUTERS BASIC EDUCATION CHILDREN CLASSROOM COMMUNICATION COMPLETION COMPULSORY EDUCATION COMPUTER SKILLS COMPUTERS IN EDUCATION CURRICULA CURRICULUM DEMAND FOR EDUCATION DISTANCE LEARNING EARLY EDUCATION EDUCATION EDUCATION ECONOMICS EDUCATION LEVEL EDUCATION SYSTEM EDUCATIONAL ATTAINMENT EDUCATIONAL LEVEL EDUCATIONAL PATHS EMPLOYEES FEMALE EDUCATION FEMALE EMPLOYMENT FEMALE GRADUATES FEMALE LABOR FEMALE LABOR FORCE FIRM SIZE GENDER DIFFERENCES GENERAL EDUCATION GENERAL SECONDARY EDUCATION GRADUATES GROUPS HIGHER EDUCATION HIGHER LEVELS OF EDUCATION HOUSEHOLD CONSUMPTION HUMAN CAPITAL ILLITERATE POPULATION ILLITERATES INFORMAL SECTOR INTERNATIONAL MIGRATION INVESTMENT INVESTMENT IN EDUCATION ITS JOB JOB TRAINING KNOWLEDGE LABOR LABOR CONTRACT LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LEARNING LEARNING PROCESS LEARNING PROGRAMS LEVEL OF EDUCATION LEVELS OF EDUCATION LOWER LEVELS OF EDUCATION MALE WORKERS MANAGEMENT MATHEMATICS ON-THE-JOB TRAINING PAPERS PARTICIPATION PARTICIPATION RATES PREVIOUS DRAFT PREVIOUS STUDIES PRIMARY EDUCATION PRIMARY LEVEL PRIVATE SECTOR PRIVATE SECTOR WORKERS QUALITY OF EDUCATION RATES OF RETURN RATES OF RETURN TO EDUCATION RETAIL TRADE RETURNS TO EDUCATION SCHOOL SCHOOL DROP SCHOOL DROP-OUT RATES SCHOOLING SCHOOLS SECONDARY CERTIFICATE SECONDARY EDUCATION SECONDARY STUDENTS SKILLED LABOR SKILLED WORKERS SKILLS SOCIAL WORK STATE-OWNED ENTERPRISES STATISTICS STUDENTS STUDIES STUDY SUBSTITUTION EFFECT TEACHERS TECHNOLOGY TRAINING UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNIVERSITY EDUCATION UNSKILLED LABOR VOCATIONAL EDUCATION VOCATIONAL TRAINING WAGE DISPERSION WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WOMEN Herrera, Santiago Badr, Karim Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education |
| geographic_facet |
Middle East and North Africa Egypt, Arab Republic of |
| relation |
Policy Research working paper ; no. WPS 5740 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Herrera, Santiago Badr, Karim |
| author_facet |
Herrera, Santiago Badr, Karim |
| author_sort |
Herrera, Santiago |
| title |
Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education |
| title_short |
Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education |
| title_full |
Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education |
| title_fullStr |
Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education |
| title_full_unstemmed |
Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education |
| title_sort |
why does the productivity of education vary across individuals in egypt? firm size, gender, and access to technology as sources of heterogeneity in returns to education |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110727094819 http://hdl.handle.net/10986/3503 |
| _version_ |
1764387106045558784 |
| spelling |
okr-10986-35032021-04-23T14:02:10Z Why Does the Productivity of Education Vary across Individuals in Egypt? Firm Size, Gender, and Access to Technology as Sources of Heterogeneity in Returns to Education Herrera, Santiago Badr, Karim ACCESS TO COMPUTERS BASIC EDUCATION CHILDREN CLASSROOM COMMUNICATION COMPLETION COMPULSORY EDUCATION COMPUTER SKILLS COMPUTERS IN EDUCATION CURRICULA CURRICULUM DEMAND FOR EDUCATION DISTANCE LEARNING EARLY EDUCATION EDUCATION EDUCATION ECONOMICS EDUCATION LEVEL EDUCATION SYSTEM EDUCATIONAL ATTAINMENT EDUCATIONAL LEVEL EDUCATIONAL PATHS EMPLOYEES FEMALE EDUCATION FEMALE EMPLOYMENT FEMALE GRADUATES FEMALE LABOR FEMALE LABOR FORCE FIRM SIZE GENDER DIFFERENCES GENERAL EDUCATION GENERAL SECONDARY EDUCATION GRADUATES GROUPS HIGHER EDUCATION HIGHER LEVELS OF EDUCATION HOUSEHOLD CONSUMPTION HUMAN CAPITAL ILLITERATE POPULATION ILLITERATES INFORMAL SECTOR INTERNATIONAL MIGRATION INVESTMENT INVESTMENT IN EDUCATION ITS JOB JOB TRAINING KNOWLEDGE LABOR LABOR CONTRACT LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LEARNING LEARNING PROCESS LEARNING PROGRAMS LEVEL OF EDUCATION LEVELS OF EDUCATION LOWER LEVELS OF EDUCATION MALE WORKERS MANAGEMENT MATHEMATICS ON-THE-JOB TRAINING PAPERS PARTICIPATION PARTICIPATION RATES PREVIOUS DRAFT PREVIOUS STUDIES PRIMARY EDUCATION PRIMARY LEVEL PRIVATE SECTOR PRIVATE SECTOR WORKERS QUALITY OF EDUCATION RATES OF RETURN RATES OF RETURN TO EDUCATION RETAIL TRADE RETURNS TO EDUCATION SCHOOL SCHOOL DROP SCHOOL DROP-OUT RATES SCHOOLING SCHOOLS SECONDARY CERTIFICATE SECONDARY EDUCATION SECONDARY STUDENTS SKILLED LABOR SKILLED WORKERS SKILLS SOCIAL WORK STATE-OWNED ENTERPRISES STATISTICS STUDENTS STUDIES STUDY SUBSTITUTION EFFECT TEACHERS TECHNOLOGY TRAINING UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNIVERSITY EDUCATION UNSKILLED LABOR VOCATIONAL EDUCATION VOCATIONAL TRAINING WAGE DISPERSION WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WOMEN 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. 2012-03-19T18:03:37Z 2012-03-19T18:03:37Z 2011-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110727094819 http://hdl.handle.net/10986/3503 English Policy Research working paper ; no. WPS 5740 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Middle East and North Africa Egypt, Arab Republic of |