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Relation between Education, Cognitive Abilities and Wages
in the Informal Sector in Greater Khartoum (Sudan)
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In this study, education was strongly positively §correlated to wages (p= 0.012, table 6). In our§study we did not investigate which education level §is more effective than the others. As§mentioned before, the expansion in education was §more in the high school than primary§school. Moreover, since the rates of return to §primary school education are generally low§(Cohen B. and W. J. House 1994), we expect high §schooling to be is more effective. Although§education in Africa has a poor reputation, our §results still show a positive effect on wages in§Khartoum.§The results clearly show that education, although §still poor, has a significant relation to wages§in the informal sector in Khartoum. Indeed other §detectable and undetectable factors, e.g.§countries economic growth, social norms and §corruption, do affect the relation between§education and wages. The relationship between §education and cognitive ability and their§interactions on wages are indeed complex and warrant §further investigations including the§impacts of productivity and economic growth.
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