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The 1995/1996 Household Income, Expenditure - (PDF, 101 mb ...

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Two-Way Classification of Attained Education Levels, and Mean and Per Capita<br />

<strong>Household</strong> <strong>Expenditure</strong>s and <strong>Income</strong>s<br />

Sample N <strong>Household</strong> <strong>Household</strong> <strong>Household</strong> <strong>Household</strong><br />

Education Mean Per Capita Mean Per Capita<br />

Level <strong>Expenditure</strong> <strong>Expenditure</strong> <strong>Income</strong> <strong>Income</strong><br />

Illiterate 6362 5248.37 1218.64 5894.30 1368.89<br />

(3401.39) (744.53) (4462.93) (987.24)<br />

Read, Write 3541 6791.00 1460.42 7563.69 1641.38<br />

only (3822.85) (1061.18) (4948.54) (1352.22)<br />

Primary School 1097 6984.45 1597.29 7869.42 1869.23<br />

(4668.33) (1171.58) (7942.05) (3609.82)<br />

Secondary <strong>1996</strong> 7181.73 1739.81 7790.12 1886.52<br />

Certificate (4381.75) (1328.61) (4997.47) (1429.85)<br />

Post-Secondary 420 8272.32 2200.98 <strong>101</strong>94.60 3595.71<br />

Certificate (6855.57) (5265.02) (29491.57) (29128.33)<br />

University 1322 10939.43 2902.69 13316.36 3628.49<br />

Certificate (7693.66) (2415.61) (19862.74) (6444.58)<br />

Post- 67 18068.80 4567.90 25735.43 6296.58<br />

University (10955.18) (2880.82) (38373.64) (7997.10)<br />

VII.9<br />

Of course crosstabulating educational attainment with household earnings<br />

is a stylize exercise because households are composed of me<strong>mb</strong>ers with<br />

varying educations. But the beneficial aspects of human capital development<br />

through education cannot be denied; even being able to read and write makes<br />

a great difference to household earnings potential. Nevertheless, assuming<br />

that the household tries to maximize benefits still begs the question of how<br />

much investment in education is best. <strong>Household</strong>s are not merely buying all<br />

the education· they can get. Returns from education are highly complicated,<br />

depending on many factors, including the background, experience, and<br />

aptitude of the student; the variation of quality of education by stage; from<br />

area to area, from school to school, and over time.<br />

Estimating returns to human capital investment is complicated by the<br />

fact that households do not keep the "input" of education constant.<br />

<strong>Household</strong>s spent an annual average of 203.82 £E per enrolled student in<br />

<strong>1995</strong>/<strong>1996</strong>, but this per-student household expenditure on education fell as the<br />

nu<strong>mb</strong>er of enrolled students in the household rose:

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