Thursday, June 03, 2010


IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor----------------------
Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau


African Development Bank (AfDB)

Working Paper #110

June 2010


Education and Employment in Malawi

Vincent Castel, Martha Phiri and Marco Stampini

[full-text, 32 pages]



This paper analyzes the relationship between

education and employment in Malawi, using

data from the 2004-05 Integrated Household

Survey (IHS-2). For both men and women,

education is the passport to formal

employment and leads to higher hourly

earnings. Within regular wage employment,

secondary education is associated with a

123 percent wage premium, and university

education with a 234 percent wage premium

(relative to illiteracy). In both rural and urban

areas, income is positively correlated with

specialization in regular wage employment.

For example, in urban areas 60 percent of the

households who derive at least 75 percent of

their income from regular wage employment

belong to the highest quartile of the income

distribution. This reflects the relative scarcity

of human capital. Among prime age males

(25 to 39 years old), only 10 percent have

completed secondary education. For women

in the same age group, the situation is even

worse, with the rate of completion of

secondary schooling as low as 3 percent.

The analysis of school enrolment highlights

that teenage women experience high dropout

rates, which prevent greater female

enrollment in higher education, and therefore

constrain future participation in the best

forms of employment.



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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
Telephone: (607) 255-2703                
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