Returns to investing in girls’ schooling in the context of economic and gender inequality: A case study of Eswatini, South Africa and Lesotho

Abstract

Educating adolescent girls benefits their financial independence, empowerment, and health. However, this is dependent on their successful transition to non-vulnerable employment, which is often a function of labour-market trends. We model the impact of increased schooling attainment on women's lifetime earnings in three Southern African countries (Eswatini, Lesotho, and South Africa) using income and expenditure surveys. We estimate lifetime earnings if girls received sufficient schooling during adolescence, and women had the same probability of employment and wage rates as men. Improved schooling attainment among girls were associated with improvements to women’s average lifetime earnings. The application of male employment and wage rates to the model results in significantly more pronounced lifetime earnings gains, except in Eswatini, where there is little gender-based discrepancy in employment rates. These findings highlight the importance of including both investments in schooling and policies to address structural barriers for girls and women to address gender inequality.