International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064

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Study Papers | Economics & Finance | Malawi | Volume 12 Issue 11, November 2023 | Rating: 6.1 / 10

The Rate of Return on Education for Wage Employed Workers in Malawi: Evidence from Integrated Household Survey

Felix Tithokoze Nankhuni

Abstract: This empirical study utilizes data obtained from the recent Malawi Integrated Household Survey to estimate the rates of returns on education in the context of wage employment. The calculations are conducted using the basic and extended Mincerian earning functions. The results suggest that, on average, an increase of one year in schooling is associated with a 5% increase in lifetime earnings. The findings align with the assumptions and conclusions documented in analogous investigations. Moreover, there exists empirical evidence indicating that the returns on investment in education increase proportionally with the amount of education attained. The research revealed that there exists a marginal disparity in the educational return between male and female workers, with males exhibiting a slightly greater rate. The presented empirical evidence offers policy makers a foundation for endorsing investments in higher education due to its potential for generating better returns. Additionally, it supports the advocacy for poverty alleviation measures that prioritize education as a solution to livelihood difficulties.

Keywords: Returns on education, wage employment, Mincerian earning functions, lifetime earnings, and investment in education

Edition: Volume 12 Issue 11, November 2023,

Pages: 608 - 613

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