Abstract
This study investigates the actual and potential impact of higher education on the development of Cameroon. Using household survey data from the first Cameroon household survey, we analyze the effect of education attainment on earnings and private returns to education. The econometric work uses Ordinary Least Squares (OLS) to estimate earning equations for full time workers across educational levels. The results confirm a relatively high premium on higher education. In effect, an additional year of schooling is expected to increase earnings implying that individual investment in education is profitable. However, the private returns to post secondary education are greater for men than for women. Next, we use the short-cut method to estimate social returns to investments in higher education. The results equally show that social returns to higher education are quite substantial but are also higher for women than for men. Finally, we determine the link between higher education measured with enrollment and gross domestic product as a proxy for national income. The findings reveal positive and significant relationship between higher education and economic growth. The study concludes that higher education plays an important role in the development process of Cameroon and that this role can be enhanced provided measures are taken to improve the efficiency of the higher education system, improve equity in attainment and ensure greater professionalism of academic programs. The study also underscores the need to reduce inequity in the distribution of benefits from higher education in Cameroon.
Key words: Higher education, economic development, estimates, university, enrollment, employment, Cameroon.
