Analysis of differences in private returns to education among Nigerian workers

Abstract

This study investigated the extent to which demographic factors were responsible for the variations in private returns to education among Nigerian workers. Data were collected using the 2005 Labour Market Survey of the National Manpower Board covering 19,888 Nigerian workers: 7,032 were with no formal education, 4,910 with primary school certificate, 4,873 with secondary school certificate and 3,073 with first degree. Occupations were categorised into agriculture, information management, commerce and industry, education, health and safety, .science and technology, legal and security, and others. Sectors of employment were grouped into private and public. 2 research questions were answered. Data were analysed using multiple regression at 0.05 level of significant. The findings revealed that all the independent variables significantly correlated with workers' earnings. They also accounted for the variance in workers' earnings. Work experience, level of education and sector of employment predicted earning differentials. Based on these findings, it was recommended that employers of labour should ensure that workers' remunerations are commensurate with their level of education so as to minimize earning differentials.