Educational investment and economic productivity: Evidence from Malawi

Tracer study data on the destination and earnings of a sample of nearly 1000 secondary school graduates are used to estimate the returns 10 investment in the Malawi Certificate of Education. Even when adjustment is made for the possibility of unemployment among graduates, the social rate of return is estimated 10 be in the order of 20% and the private rate 50%. These results are used to explain the strong private demand for entry into secondary education and to support the case for further expansion of such schools in Malawi.