Estimating Economic returns to Education in South Africa

Lerato Mothibi ORCID iD & Steven DungaORCID iD

Issue: Vol. 7 No.3  2026 Article 14 pp.832 – 847
DOI: https://doi.org/10.38159/ehass.20267314| Published online 23rd April 2026

© 2026 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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One of the most powerful drivers of economic mobility and improved earnings is education. However, the returns to education vary across age, gender, and race. This paper examined the economic returns to schooling in South Africa using data from the General Household Survey (GHS) 2022 with a total sample of 10883. The findings of the study revealed a positive relationship between education and income, suggesting that individuals with a higher education earn more than those with lower or no education. Surprisingly, the findings also showed that individuals with a master’s degree earn more than those with a PhD degree. This may indicate differences in earnings by sector, as most PhD holders are in academia, which does not pay as much as other sectors. The study also confirms the persistent disparities between the previously disadvantaged racial groups and women, who earn less than their male counterparts, even with the same level of education. Furthermore, age and experience positively correlate with earnings. The findings of the study highlight the urgent need for policymakers to address systematic labour market inequality and promote equitable access to quality education for all in South Africa.

Keywords: Education, Earnings, General Household Survey, South Africa

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Steven Henry Dunga is a Professor of Economics at North-West University, Vanderbijlpark, South Africa. His research focuses on development economics, poverty analysis, and household welfare

Lerato Mothibi is a Senior Lecturer and holds a PhD degree in Economics from the North-West University, Potchefstroom Campus, South Africa. Dr Mothibi has also published numerous research articles and has contributed to several conference proceedings both nationally and internationally. Her research interests strongly lie in macroeconomics, with a particular focus on economic growth and the automotive industry.

Mothibi, Lerato & Steven Dunga. Estimating Economic returns to Education in South Africa, ”E-Journal of Humanities, Arts and Social Sciences 7, no.3 (2026): 832 – 847. https://doi.org/10.38159/ehass.20267314

© 2026 The Author(s). Published and Maintained by Noyam Journals. This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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