OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
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- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Educational Attainment and Labour Market Outcomes in South Africa, 1994-2010
In this paper we document the impact of education levels on labour market outcomes from 1994 to
2010 using national household survey data. We show that higher levels of education are strongly rewarded
in the labour market in terms of earnings and that a tertiary qualification improves an individual’s
prospects of employment. While the premium for matric and incomplete secondary has fallen marginally
over the period, the premium to tertiary has risen, especially for women. Differences in the reward to
education level are evident for Africans versus the overall population, between urban and rural areas and
for younger versus older workers. In particular, the premium to tertiary education has increased at a higher
rate for Africans than for the overall population.
Keywords: employment, national household survey data, earnings, education, South Africa
JEL:
I24: Health, Education, and Welfare / Education and Research Institutions / Education and Inequality;
J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure;
J31: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Wage Level and Structure; Wage Differentials
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