Using econometrics many studies have looked into the rate of return to education across many different countries, and thus the true benefits to improving access to education in the developing world.
According to Chirwa and Matita (2009, p14) , with every “additional year of schooling increases the yearly lifetime earning by 10% on average”, 9.7% for males and 11.4% for females. Additionally, the rate of return to secondary school education if completed is 15.4% up from 5.1% for primary education.
Thus for the 50 students who receive a place at Hope Community Day Secondary School (CDSS), they will on average have a much higher salary than if they had not gone to secondary school. In time their perceived value of education will also grow, thus on average also increasing the level of education their children will receive (Divon-Ross, 2014).
Chirwa, E. W., and M.M. Matita. 2009. “The Rate of Return of Education in Malawi.” University of Malawi Working Paper 2009/01.
Dizon-Ross, Rebecca. 2014. “Parents’ perceptions and children’s education: Experimental evidence from Malawi.” Unpublished Manuscript.
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