Human capital theory holds that a higher education will be pursued to the extent that its pecuniary rewards outstrip its costs. This notion is founded on the neoclassical economic assumption that expected earnings conditional on educational investment are accurately anticipated by those considering such investments. However, the evidence in…

Provides empirical evidence concerning the education/earnings distribution relationship in South Africa. Investment in education is directly related to earnings across racial groups. An increase in the average education level is associated with a narrower dispersion of earnings. A more equal education distribution is associated with a more equal…