The Private Rate of Return to Schooling: Evidence from Eritrea

The extent of links between education and earnings is a determining factor in making decisions about investment in education. The purpose of this study is to estimate the private rate of return to education in Eritrea using sample data from employees working in public and private sector of the economy. The main result obtained with the help of extended Mincerian earnings function indicates the financially rewarding effect of education. It is also found that the rates of return to education increase with the increase in levels of education. The findings imply a need for expanding access to education and the possibility of sharing the cost burden of education, especially at tertiary level of education