The Education System in Malawi

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The Education System in Malawi

189

Table 8.4: Annual Average Income and Expected Annual Income According to Level of Schooling Annual Average Income for People Working (MK)

Expected Annual Income Taking into Account Unemployment risk (MK)

7,095

7,015

No school

Income Increase Compared to Previous Level of Education, in %

Lower primary

8,112

8,005

14.1

Upper primary

12,983

12,715

58.8

Lower secondary

24,969

24,038

89.1

Upper secondary

63,566

57,121

137.6

Technical college

176,582

169,221

196.3

Higher education

952,027

929,233

449.1

Source: IHS 2004.

Particularly high is the income jump for people with higher education, who are expected to earn almost 450 percent more than their peers who have only a TC education. The IHS data indicate very high wage premiums for technical and higher education, meaning a high labor market demand for the TEVET and higher education qualified workforce, and at the same time reflecting the extraordinary low enrollment rate for both educational streams (see chapters 6 and 7). In higher education, the wage premium is extremely high compared to other countries. Recent comparable data of mean income by educational level as a percentage of GDP per capita were available for five African countries in addition to Malawi. Figure 8.2 shows that up to the lower secondary level, the mean income as a percentage of GDP in Malawi stays low in comparison to the other countries. It approaches the higher end of the group with three times the GDP per capita in upper secondary, and rises above all other countries for people with a technical training background, who can expect to earn 8.25 times the country’s per capital income. However, the ratio of expected incomes to GDP per capita rises to an enormous 44.5 for people with a tertiary education background, way beyond that of other countries. Figure 8.2: Mean Income by Level of Education in Relation to GDP per Capita (in %)

Ratio education/GDP

50 45

Mali 2004

40

Mauritania 2004

35

Benin 2006

30

Burkina 2003

25 20

Congo Rep. 2005

15

Malawi 2004

10 5 0 No school

Source: World Bank database.

Primary

Lower sec.

Upper sec.

TEVET

Tertiary


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