Wage earnings and rates of returns to education for males and females in sudan

Abstract

An earning function is fit to data on wages and other relevant human capital variables, using the recent National Baseline Household Survey 2009. Ordinary least squares are used to estimate the parameters, and Heckman two stage estimation method is exploited to correct for selectivity bias in the sample of wage earners. For males, selection bias is indicated, and therefore the Heckman procedure is the preferred method. Overall, returns to females are higher. While men obtain a return for additional year of primary education ranging from 3.9% - 4.9% and a higher return of 5.6% on post - secondary level, women education returns are 6.2% - 8.5% for each year of primary education and 6% on post -secondary education. The estimated rates of return are low and are comparable with levels obtained from similar studies in countries in Middle East and Africa. They are also lower than those obtained at the beginning of the 90s for Sudan.