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Undergraduate Economic Review

Abstract

This study investigates the effects of education on the participation of women in the informal sector of 40 developing countries using OLS linear regression. Through some econometric adjustments, the final model suggests that education, represented by years of schooling, is correlated with a 2.74% increase in women’s chances of being employed in this sub-sector of the economy. This means that the better educated still end up doing the jobs that do not require such knowledge. An implication of the result is that the current way which schooling is delivered to the poor might not be the most efficient way.

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