Education and self-employment in Jamaica

Comparative Education Review

Volumn 40, Issue 2, 1996, Pages 177-191

  Honig, Benson ^a  

^a NONE

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[No Author keywords available]

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EID: 0030522712     PISSN: 00104086     EISSN: None     Source Type: Journal    
DOI: 10.1086/447371     Document Type: Article

References (51)

1. See M. Woodhall, "Education and Training under Conditions of Economic Austerity and Restructuring," Bureau for the Coordination of Operational Activities (International Labor Organization-Unesco Interagency Task Force) BAO/91/WS/6 (Paris: Unesco, 1991).
2. The term dates back to an interagency employment mission conducted in Kenya in 1971 that provided the following descriptions of informal activity: (i) ease of entry, (ii) reliance on indigenous resources, (iii) family ownership of enterprise, (iv) small scale of operation, (v) operation in a semipermanent or temporary structure or in a variable location, (vi) skills acquired outside the formal education system, and (vii) operation in unregulated and competitive markets. See K. King, The African Artisan: Education and the Informal Sector (London: Heineman, 1977).
3. World Bank, World Development Report (Washington, D.C.: Oxford University Press, 1994).
4. World Bank, The World Tables (Baltimore, Md.: Johns Hopkins University Press, 1994).
5. See J. Woolcock, "Class Conflict and Class Reproduction of Jamaican Educational Reforms of 1957 and 1962," Social and Economic Studies 33, no. 4 (1984): 51-99; also, see P. E. Riak, "Social Consequences of Educational Expansion without Structural Change" (Ph.D. diss., Stanford University, School of Education, May 1983).
6. See J. Woolcock, "Class Conflict and Class Reproduction of Jamaican Educational Reforms of 1957 and 1962," Social and Economic Studies 33, no. 4 (1984): 51-99; also, see P. E. Riak, "Social Consequences of Educational Expansion without Structural Change" (Ph.D. diss., Stanford University, School of Education, May 1983).
7. R. King, "The Jamaica Schools Commission and the Development of Secondary Schooling," in Development and Disillusion in Third World Education, ed. Vincent D'Oyley and Reginald Murray (Ontario: Ontario Institute for Studies in Education, 1979).
8. See J. Mincer, Schooling, Experience, and Earnings (New York: National Bureau of Economic Research, 1974); also T. W. Shultz, "Investment in Man: An Economist's View," Social Service Review 33, no. 2 (June 1959): 69-75.
9. See J. Mincer, Schooling, Experience, and Earnings (New York: National Bureau of Economic Research, 1974); also T. W. Shultz, "Investment in Man: An Economist's View," Social Service Review 33, no. 2 (June 1959): 69-75.
10. G. Psacharopoulos and M. Woodhall, Education for Development: An Analysis of Investment Choices (Oxford: Oxford University Press, 1985).
11. See J. Coleman, Foundations of Social Theory (Cambridge, Mass.: Belknap, 1990), "Social Capital in the Creation of Human Capital," American Journal of Sociology 94 (1988): S95-S120, and Equality and Achievement in Education (Boulder, Colo.: Westview, 1990).
12. See J. Coleman, Foundations of Social Theory (Cambridge, Mass.: Belknap, 1990), "Social Capital in the Creation of Human Capital," American Journal of Sociology 94 (1988): S95-S120, and Equality and Achievement in Education (Boulder, Colo.: Westview, 1990).
13. See J. Coleman, Foundations of Social Theory (Cambridge, Mass.: Belknap, 1990), "Social Capital in the Creation of Human Capital," American Journal of Sociology 94 (1988): S95-S120, and Equality and Achievement in Education (Boulder, Colo.: Westview, 1990).
14. The relationship between collective action and credit allocation has been studied at the macro level in Tunisia where credit is offered at negative real rates of interest. J. Nugent used the ratio of total bank credit by sector to indicate one measure of the strength of collective action in that sector. See J. Nugent, "Collective Action in Tunisia's Producer Organizations: Some Variations on the Olsonian Theme," in The New Institutional Economics and Development Theory, ed. M. Nabi and J. Nugent (Amsterdam: North Holland, 1989).
15. R. P. Dore, The Diploma Disease: Education, Qualification, and Development (Berkeley: University of California Press, 1976).
16. See K. J. Arrow, "Limited Knowledge and Economic Analysis," American Economic Review 64 (March 1974): 1-10; also A. M. Spence, Market Signaling: Informational Transfer in Hiring and Related Screening Processes (Cambridge, Mass.: Harvard University Press, 1974); and R. Collins, The Credential Society: An Historical Sociology of Education and Stratification (New York: Academic Press, 1979).
17. See K. J. Arrow, "Limited Knowledge and Economic Analysis," American Economic Review 64 (March 1974): 1-10; also A. M. Spence, Market Signaling: Informational Transfer in Hiring and Related Screening Processes (Cambridge, Mass.: Harvard University Press, 1974); and R. Collins, The Credential Society: An Historical Sociology of Education and Stratification (New York: Academic Press, 1979).
18. See K. J. Arrow, "Limited Knowledge and Economic Analysis," American Economic Review 64 (March 1974): 1-10; also A. M. Spence, Market Signaling: Informational Transfer in Hiring and Related Screening Processes (Cambridge, Mass.: Harvard University Press, 1974); and R. Collins, The Credential Society: An Historical Sociology of Education and Stratification (New York: Academic Press, 1979).
19. Such firms create barriers to entry, reaping excess profits from preferential access to credit and technology while sharing a portion of those profits with labor. A surplus of unemployed workers depresses wages in the informal sector.
20. See E. M. Beck, P. Horan, and C. Tolbert II, "Industrial Segmentation and Labor Market Discrimination," Social Problems 28 (1980): 113-30; also R. Rumberger, "The Potential Impact of Technology on the Skill Requirements of Future Jobs in the United States," in The Future Impact of Technology on Work and Education, ed. G. Burke and R. Rumberger (London: Falmer, 1987); and W. Dickens and K. Lang, "A Test of Dual Labor Market Theory," American Economic Review 75, no. 4 (September 1985): 792-805.
21. See E. M. Beck, P. Horan, and C. Tolbert II, "Industrial Segmentation and Labor Market Discrimination," Social Problems 28 (1980): 113-30; also R. Rumberger, "The Potential Impact of Technology on the Skill Requirements of Future Jobs in the United States," in The Future Impact of Technology on Work and Education, ed. G. Burke and R. Rumberger (London: Falmer, 1987); and W. Dickens and K. Lang, "A Test of Dual Labor Market Theory," American Economic Review 75, no. 4 (September 1985): 792-805.
22. See E. M. Beck, P. Horan, and C. Tolbert II, "Industrial Segmentation and Labor Market Discrimination," Social Problems 28 (1980): 113-30; also R. Rumberger, "The Potential Impact of Technology on the Skill Requirements of Future Jobs in the United States," in The Future Impact of Technology on Work and Education, ed. G. Burke and R. Rumberger (London: Falmer, 1987); and W. Dickens and K. Lang, "A Test of Dual Labor Market Theory," American Economic Review 75, no. 4 (September 1985): 792-805.
23. For a discussion of African-American business owners, see Frank A. Fratoe, "Social Capital of Black Business Owners," Review of Black Political Economy (Spring 1988): 33 -50. Social capital among Catholics and the relationship to high school dropout rates are discussed in Coleman, "Social Capital in the Creation of Human Capital." 16 Twenty-five cases were dropped due to missing data, yielding 227 firms for this analysis.
24. For a discussion of African-American business owners, see Frank A. Fratoe, "Social Capital of Black Business Owners," Review of Black Political Economy (Spring 1988): 33 -50. Social capital among Catholics and the relationship to high school dropout rates are discussed in Coleman, "Social Capital in the Creation of Human Capital." 16 Twenty-five cases were dropped due to missing data, yielding 227 firms for this analysis.
25. Although commercial vending is the most prevalent (and itinerant) component of the informal sector, it was hypothesized that the productive labor market segment would demonstrate the most clearly discernible variation on the returns to education, due to the additional complexity as well as the range of technologies employed.
26. Weighting of the three sample populations was accomplished by using a national microenterprise survey conducted in 1992 as a baseline (Statistical Institute of Jamaica, "The Jamaican Microentrepreneur Survey 1992," prepared for the Office of the Prime Minister, Policy Review Unit, Kingston; preliminary findings appeared in memorandum form in June 1993). Based on 2,392 businesses, the urban component was 33 percent, rural 61 percent, and loan recipient group 5 percent.
27. Individuals who obtained loans were oversampled by a factor of approximately 20 in order to obtain a sufficiently robust sample size. They were identified with the assistance of five different organizations that targeted microentrepreneurs for credit assistance. The remaining sample was reweighted to compensate, utilizing a 4.7 percent factor, as determined by the most recent survey of microenterprise conducted in Jamaica (ibid.).
28. Kingston surveys consisted of two geographical areas: Waltham Park Road between Spanish Town Road and Hagley Park Road, bordering Trench Town; and Old Hope Road between Hope Road and Cross Roads, bordering New Kingston. These areas were identified as providing an abundant source of informal activity as well as traversing a cross-section of socioeconomic urban conditions. The weighting of the Kingston urban cases utilized a factor of 24.5 percent, as determined by the most recent and comprehensive survey conducted by the Statistical Institute of Jamaica and the University of the West Indies (ibid.).
29. Port Antonio firms were identified through a comprehensive survey of all business areas. Major residential roads were systematically covered; however, a house-by-house census was not possible due to time limitations.
30. For example, with reference to eq. (1) in table 2, a male microentrepreneur would have a logged income of 6.06, + .305 were he married, + .265 had he gone to high school (as compared to the junior secondary referent), + .09 should he attend church semiweekly. Other coefficients, such as parental characteristics, would be added (or in the case of females, subtracted) as indicated.
31. 2 measurements are reported raw, not adjusted. The adjusted scores were virtually identical in each regression and were omitted for brevity. Eigenvalues were analyzed to examine possible colinearity. The variables were found to demonstrate primarily independent variances. Where dependency was observed, the effects on the coefficients were quite small.
32. Years of experience in business can be expressed with a Mincer-type earnings function, which typically utilizes ageless schooling; see Mincer (n. 7 above). In the present study, the actual years of experience in the business or trade was examined.
33. Microentrepreneurs were also asked how much they would need to earn in order to be willing to close their business and work elsewhere. Responses were carefully evaluated for inconsistencies.
34. Three categories were created for attendance of the number of years normatively necessary for completion of primary, secondary, and postsecondary education. See C. Kerckhoff, R. Campbell, and J. Trott, "Dimensions of Educational and Occupational Attainment in Great Britain," American Sociological Review 47 (June 1982): 347-64. Although more specific categorization of the education variable would most likely prove useful, the small sample size prevents such divisions. An additional complication was the variation of the structure of education in Jamaica during the past 50 years, for which categorization according to formal completion rates of primary and secondary education would prove inconsistent and quite useless. See E. Miller, Jamaican Society and High Schooling (Kingston: University of the West Indies, Mona Jamaica, Institute of Social and Economic Research, 1990).
35. Three categories were created for attendance of the number of years normatively necessary for completion of primary, secondary, and postsecondary education. See C. Kerckhoff, R. Campbell, and J. Trott, "Dimensions of Educational and Occupational Attainment in Great Britain," American Sociological Review 47 (June 1982): 347-64. Although more specific categorization of the education variable would most likely prove useful, the small sample size prevents such divisions. An additional complication was the variation of the structure of education in Jamaica during the past 50 years, for which categorization according to formal completion rates of primary and secondary education would prove inconsistent and quite useless. See E. Miller, Jamaican Society and High Schooling (Kingston: University of the West Indies, Mona Jamaica, Institute of Social and Economic Research, 1990).
36. Approximately 18 percent of the applicants are selected from the pool of primary school students, while over 51 percent of the students who had a private preparatory education are accepted. Over two-thirds of the students in public high schools are subject to stiff tuition fees; see Miller.
37. Coleman, Foundations of Social Theory (n. 9 above).
38. For instance, imagine two communities - one in which religious, social, and educational activities are highly interconnected, the other in which they are discrete systems. In the former, shared information regarding, say, the misbehavior of a child in school will have ramifications in extraschool activities, as agents outside the classroom assist in demanding conformity. This additional social pressure is a byproduct of closure, the results of which are readily apparent among various highly integrated sects.
39. Coleman, "Social Capital in the Creation of Human Capital."
40. M. Hout, "Status, Autonomy, and Training in Occupational Mobility," American Journal of Sociology 89, no. 6 (1984): 1379-1409. Also see Ronald Breiger, "The Social Class Structure of Occupational Mobility," American Journal of Sociology 87, no. 3 (1981): 579-611.
41. M. Hout, "Status, Autonomy, and Training in Occupational Mobility," American Journal of Sociology 89, no. 6 (1984): 1379-1409. Also see Ronald Breiger, "The Social Class Structure of Occupational Mobility," American Journal of Sociology 87, no. 3 (1981): 579-611.
42. The semilog relation is when only one side of the equation is logged. The interpretation of the coefficient is simply the proportional change in Y (income) that results from a unit change in x (unlogged, independent variable). The coefficient is the proportional change - multiplying by 100 yields a percentage change. See D. Gujarati, Basic Econometrics (New York: McGraw-Hill, 1988).
43. See M. Tueros, "Education, Heterogeneity, and Productive Efficiency in Peru's Informal Sector" (Ph.D. diss., Stanford University, 1993); and P. Moock and R. Bellow, "Vocational and Technical Education in Peru," working paper (WPS 87), Population and Human Resources Department (Washington, D.C.: World Bank, 1988).
44. See M. Tueros, "Education, Heterogeneity, and Productive Efficiency in Peru's Informal Sector" (Ph.D. diss., Stanford University, 1993); and P. Moock and R. Bellow, "Vocational and Technical Education in Peru," working paper (WPS 87), Population and Human Resources Department (Washington, D.C.: World Bank, 1988).
45. There were only two microentrepreneurs who had attended college in the rural group, providing insufficient data for analyses.
46. In general, there were fewer opportunities to expand a particular firm in rural areas. The considerable distance to the main (Kingston/St. Andrew) market most probably made wholesale or export production less viable. Bureaucratic hurdles added to this disincentive. The range of tax compliance procedures and waivers necessary to obtain a license to import reduced tax raw materials (at substantial savings) could not be completed without numerous visits to the capital city.
47. See Tueros; Moock and Bellow. Also see D. Mazumdar, The Urban Labor Market and Income Distribution - a Study of Malaysia (New York: Oxford University Press, 1981). One plausible explanation is that the less educated individuals in the upper tier possess extraordinary motivation and/ or greater degrees of managerial and entrepreneurial abilities than their slightly more educated competitors. This subject merits additional study.
48. See D. Blau, "Self-Employment, Earnings, and Mobility in Peninsular Malaysia," World Development 14, no. 7 (1986): 839-52. Also see A. Kalleberg, M. Wallace, and R. Althauser, "Economic Segmentation, Worker Power, and Income Inequality," American Journal of Sociology 87, no. 3 (1981): 651-83.
49. See D. Blau, "Self-Employment, Earnings, and Mobility in Peninsular Malaysia," World Development 14, no. 7 (1986): 839-52. Also see A. Kalleberg, M. Wallace, and R. Althauser, "Economic Segmentation, Worker Power, and Income Inequality," American Journal of Sociology 87, no. 3 (1981): 651-83.
50. See I. Berg, Education and Jobs: The Great Training Robbery (Boston: Beacon, 1971).
51. Psacharopoulos and Woodhall (n. 8 above).