
Contents
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18.1 Introduction 18.1 Introduction
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18.2 Economic Theories of Human Capital 18.2 Economic Theories of Human Capital
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18.2.1 The Human Capital Accumulation Approach 18.2.1 The Human Capital Accumulation Approach
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18.2.1.1 The Demand for Education, Accumulation of Human Capital and Productivity Growth 18.2.1.1 The Demand for Education, Accumulation of Human Capital and Productivity Growth
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18.2.2 Education, a Screening Device of the Labor Market 18.2.2 Education, a Screening Device of the Labor Market
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18.2.2.1 The Contention of the Screening Theory 18.2.2.1 The Contention of the Screening Theory
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18.3 Testing the Screening Assertion 18.3 Testing the Screening Assertion
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18.4 Analytical Frameworks of the Return to Education 18.4 Analytical Frameworks of the Return to Education
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18.4.1 The Verification of the Mincer Model 18.4.1 The Verification of the Mincer Model
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18.4.2 Non-Mincerian Models 18.4.2 Non-Mincerian Models
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18.5 Are Negative Returns Cases of Educational Mismatch? 18.5 Are Negative Returns Cases of Educational Mismatch?
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18.5.1 The Laffer Curve on Returns to Education 18.5.1 The Laffer Curve on Returns to Education
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18.5.2 Assessing the Hypothesis of Negative Returns to Education 18.5.2 Assessing the Hypothesis of Negative Returns to Education
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18.6 Empirical Evidence of the Returns to Education in Cameroon 18.6 Empirical Evidence of the Returns to Education in Cameroon
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18.6.1 Characteristics of the Cameroon Education System 18.6.1 Characteristics of the Cameroon Education System
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18.6.2 Empirical Strategy 18.6.2 Empirical Strategy
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18.6.3 Descriptive Statistics of Variables 18.6.3 Descriptive Statistics of Variables
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18.6.4 Labor Market Participation and Returns to Education 18.6.4 Labor Market Participation and Returns to Education
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18.7 Conclusion 18.7 Conclusion
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References References
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18 Education: The Hypothesis of Negative Returns
Get accessBernadette Dia Kamgnia, CIRES, University of Abidjan
Cyrille Bergaly Kamdem, University of Yaoundé
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Published:26 January 2023
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Abstract
Education increases people's productivity and creativity, as well as promoting entrepreneurship and advanced technologies. Also, education plays a crucial role in ensuring economic and social progress, thus improve income distribution. Its management nourished the economic debates over the years, triggered by authors such as Schultz, Becker, Mincer, Arrow, Spence, Psacharopoulos, Stiglitz, Acemoglu. Some authors pointed out that investment in education has a positive effect on its profitability, whereas for others, the effect of investment on education is small or even negative. Some others even supported the existence of a Laffer curve on returns to education. Education systems in Sub-Saharan Africa fall under the second group, due to the predominance of the informal sector which has become the only viable option for making a modest living, even for those with secondary, vocational, and tertiary education, in many African countries, including Cameroun. Based on the 2014 Cameroon household survey, in which only 9% of the individuals worked in the formal sector under a contract, positive and significant returns to education, as high as 80% for women, were found. Proper data must be collected to confirm the current findings, hence firmly reject the hypothesis of negative returns to education in a Sub-Saharan African country, as Cameroon.
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