Educational Attainment and Labour Market Outcomes in South Africa, 1994-2010

In this paper we document the impact of education levels on labour market outcomes from 1994 to 2010 using national household survey data. We show that higher levels of education are strongly rewarded in the labour market in terms of earnings and that a tertiary qualification improves an individual’s prospects of employment. While the premium for matric and incomplete secondary has fallen marginally over the period, the premium to tertiary has risen, especially for women. Differences in the reward to education level are evident for Africans versus the overall population, between urban and rural areas and for younger versus older workers. In particular, the premium to tertiary education has increased at a higher rate for Africans than for the overall population.