Microeconomic analysis of private returns to education in Egypt
An instrumental variable quantile regression approach
Bibliographic Data
| ID | 21803864 |
|---|---|
| Authors | Shereen Nosier (Bibliotheca Alexandrina), Aya El-Karamani (Bibliotheca Alexandrina), Reham Salah (0000-0002-3935-1460, Bibliotheca Alexandrina, corresponding author) |
| Year | 2022 |
| Volume | 14 |
| Issue | 1 |
| Pages | 95-117 |
| Publication date | 2022-01-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Middle East Development Journal (JOURNAL) |
| Journal identifiers | ISSN: 1793-8120 • E-ISSN: 1793-8171 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/17938120.2022.2074671 |
| OpenAlex | W4281610600 |
| Language | EN |
| Citations received | 1 |
| References cited | 27 |
This study provides updated estimates for the rate of return to an additional year of schooling in Egypt. Additionally, it addresses the major issues of heterogeneous returns and endogeneity of educational attainment. Instrumental variable quantile regression along with other models is employed for that objective. The paper uses the most recent issues of the Harmonized Labor Force Survey and Egypt Labor Market Panel Survey from 2008 to 2018. The findings can be summarized as follows: the returns increase over time up to 2015 then decreases to reach 5.67% in 2018, a number that falls below the global average. Moreover, females’ returns to education are higher than males; the returns are also higher in urban areas compared to rural ones providing an evidence that there exists developmental bias towards urban regions in Egypt. In line with preceding studies, the instrumental variable two-stage least squares estimates are higher than the ordinary least squares’ estimates. Additionally, a confirmation of heterogeneous returns across the wage distribution is presented. The instrumental variable quantile regression estimates exhibit an increasing pattern across the levels of wages. Thus, the less able individuals gain lower marginal profits of education than do the more gifted employees. Indicating complementarity between education and unobservable characteristics and that education may aggravate wage inequality in Egypt. Furthermore, it confirms the presence of the over-education crisis. Moreover, the region-based results in terms of the ability explanation provide that education complements low ability in rural areas while it compensates it in urban ones
Demographic economics · Econometrics · Economic growth · Economics · Educational attainment · Endogeneity · Instrumental variable · Labour economics · Ordinary least squares · Quantile · Quantile regression · Unobservable · Wage · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Housing Market and Economics
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Returns to investment in education
The Returns to Education
Returns to investment in education
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Regression Quantiles
Why poor people stay poor
The Returns to Education in Africa
Is School the Best Route to Skills? Returns to Vocational School and Vocational Skills in Egypt
Estimates of the economic return to schooling for 28 countries
Number of siblings and intellectual development
Returns to investment in education
The Effects of Family Structure on Educational Attainment
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |