Explaining Human Capital Investment in Africa

Although education is an important determinant of economic and human well-being, some parents invest more than others in the human capital of their children. In much of sub-Saharan Africa, religious affiliation is a strong predictor of investment in human capital. Although exposed to the same educational policies, many of which have expanded access to education among the poorest in the past two decades, Muslims routinely invest less in education than Christians. This study uses a combination of surveys, semi-structured interviews, and administrative data to test three plausible mechanisms that may explain differences in human capital investment between Christians and Muslims: access, returns to education, and competition between formal and religious schooling. The site of the research is Malawi, where the Christian-Muslim gap in education persists despite two decades of free primary education.