Estimating the Returns to Education in Algeria

Abstract

This study measures the private rates of return to education in Algeria using both basic and extended Mincerian earnings functions. To do so, a random sample of employees from Saida province in Algeria has been used. The findings of the study show that an additional year of schooling increases earnings by 9,5%. Returns from secondary education are the highest while returns from middle education are the lowest. It is also interesting to note that female workers tend to have higher returns than male workers. Furthermore, returns to education are higher in rural and public sector compared to urban and private sector respectively.