Journal of Education & Social Policy

ISSN 2375-0782 (Print) 2375-0790 (Online) DOI: 10.30845/jesp

Education and the Distribution of Earnings in Kenya: Evidence from Quantile Regression Analysis
Anthony Wambugu

The paper used matched employer-employee data to investigate whether there are asymmetries in the effects of observed dimensions of human capital, such as education and work experience on the conditional earnings distribution of manufacturing sector workers in Kenya. Ordinary least squares method was used to estimate the conditional expected earnings, while quantile regression method was used to estimate the earnings function at different points along the conditional earnings distribution. The regression estimates show that the earnings premium associated with education and experience varies across the conditional earnings distribution. This suggests that education and experience contribute to widening the earnings dispersion in the Kenya manufacturing sector labor market.

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