Department of Economics Working Papers,
Vienna University of Economics and Business, Department of Economics

Abstract: We assess empirically the changes in returns to education at the subnational level in Uganda using the Uganda National Household Surveys for 2002/2003 and 2005/2006. Our results indicate that average returns to schooling tended to converge across regions in the last decade. The overall trend in convergence of returns to schooling took place at all levels of educational attainment and this behaviour in returns to education is mostly driven by the dynamics of returns to schooling in urban areas. We analyse subnational convergence in returns to education and unveil deviant dynamics in Northern Uganda. We discuss the potential challenges to inclusive economic growth in Uganda which are implied by our results.

Keywords: Human capital, returns to education, regions, Uganda

JEL-codes: J24; R23; O55 February 2014

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