Learning and earning in Nigeria: who works for less

Abstract

This study quantitatively analyses the differences in levels or size of financial returns to education, by gender in the Nigerian labour market with particular emphasis on estimating gender earning differentials across the country, at zonal levels and at different levels of educational attainments. The analysis is static, employing Mincer's wage equation on a cross sectional dataset. An attempt is made at solving the endogeneity problem that often arise from the violation of the strict exogeneity assumption associated with education, using instrumental variable. The study finds skewed earnings against the female gender, especially in Northern Nigeria. Private returns at all levels of education are lower in the Northern region. Based on the findings, the study suggests that developmental programs aimed at curbing gender and regional inequalities in returns especially for the Northern part of Nigeria be encouraged.