Exploration of the impact of education on labour market outcomes in South Africa

The study examined how changes in years of education affect employment outcomes, labour market earnings, and their distribution. These issues were evaluated using the general household surveys for 2014–2018 and several econometric techniques. The findings indicate that education has a heterogeneous effect on employment across population groups and gender, with women having a higher probability of employment than men. Moreover, returns to education vary across the wage distribution, gender, education level, and exposure to the compulsory schooling law, with evidence suggesting that education may increase wage inequality. Furthermore, the analysis shows that starting school early is associated with lower educational attainment and reduced labour market earnings. However, among those who start school early, education increases average earnings.