DIFFERENTIAL RETURNS TO EDUCATION ACROSS COGNITIVE ABILITY LEVELS: EVIDENCE FROM CEBU LONGITUDINAL HEALTH AND NUTRITION SURVEY DATA
This thesis estimates the returns to education in association with childhood cognitive ability for Filipino youth using the Cebu Longituditional Health and Nutrition Survey Data. After reviewing wide range of literature on returns to education and cognitive ability, we find that limited studies have been done concerning the returns to education in conjunction with childhood cognitive ability in the context of developing country. Estimated results using OLS method show that the male returns to education at average cognitive level is 2.5% and for female it is around 8%. In terms of cognitive ability, the marginal effect of schooling decreases as cognitive ability increases indicating that the schooling has the largest impact for low cognitive ability people. Female seems to earn 20% less than male signaling the need of policy formulation for female empowerment. Employment type has positive and significant impact on earning, mothers education, base level household income, family size and community level characteristics have positive but insignificant impact on earnings.
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