Human Capital Development in Africa

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: closed (30 April 2025) | Viewed by 5486

Special Issue Editors


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Guest Editor
Research Department, African Economic Research Consortium (AERC), Nairobi, Kenya
Interests: development finance; trade; FDI; poverty; labour markets; emerging and developing economies

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Guest Editor
Blavatnik School of Government, University of Oxford, Radcliffe Observatory Quarter, 120 Walton St., Oxford, UK
Interests: economic development

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Guest Editor
Department of Economics, Brock University, 1812 Sir Isaac Brock Way, St. Catharines, ON L2S 3A1, Canada
Interests: econometrics; economic development

Special Issue Information

Dear Colleagues,

Introduction

Human capital development is critical for fostering sustainable economic growth and enhancing social welfare in the developing world, particularly in the context of African countries where the quality of education, health services, and skill development has been a major challenge. This Special Issue of Economies aims to bring together rigorous empirical analyses and innovative theoretical frameworks that focus on the complex and diverse aspects of human capital development. Anchored in relevant theories, the papers included in this Issue will utilize relevant econometric techniques and computable general equilibrium models to address the critical challenges and opportunities facing human capital in Africa.

Rationale for the Special Issue

The African continent is experiencing a unique confluence of demographic, economic, and social changes. With a fast-growing youth population and rapid urbanization, the need for strategic investment in human capital has never been more urgent. There are some critical decisions that need to be made in the sphere of human capital development. Some suggest a paradigm shift, for instance, in education from ‘spending in schooling’ to ‘invest in learning’ as most young graduates’ skills do not fit with the requirements of the labor market (Prichett, 2024). The themes covered in this Special Issue reflect the complex interplay between various factors that influence human capital development and economic growth. The demographic dividends of a youthful population and social stability cannot be achieved if policy makers do not give priority to human capital development.

Investments in human capital (e.g., in education and health) have been shown to yield significant returns in the form of improved productivity (e.g., due to improved health), higher incomes (e.g., due to a higher number of people returning to schooling), and an enhanced quality of life. This Special Issue also covers the impact of the COVID-19 pandemic on labor markets, household food security, and individual income levels. However, disparities in access to education, healthcare, and employment opportunities pose substantial barriers to realizing these benefits. By examining these themes, this Special Issue will provide valuable insights into the policies and practices that can facilitate human capital development in an African context.

More than 20 research papers were submitted to this Special Issue which used micro-level data from several African countries. These papers are the outcome of a large collaborative project from the African Economic Research Consortium (AERC)—a premier economic think tank established in 1988. The authors of these studies received research grants to complete the papers included in this Special Issue. All of the projects and case studies presented in this Special Issue were supported by the generous financial support of the Bill & Melinda Gates Foundation (BMGF). The studies seek to inform policy makers and development practitioners on human capital development in Africa from the viewpoint of individual countries (or groups of countries) and/or sub-regions.

The Themes of the Special Issue

  1. Foreign direct investment and human capital development;
  2. Human capital development and household income growth;
  3. Public investment in education;
  4. Primary education policy;
  5. Teacher qualifications and experience and student attainment;
  6. Social assistance and school enrolment;
  7. School feeding programs and student performance;
  8. Healthcare-seeking behavior during COVID-19;
  9. The impact of COVID-19 on household income, employment, and food security;
  10. Health insurance (e.g., universal health coverage);
  11. Migration;
  12. Women’s participation in the labor force;
  13. Returnee female migrants from the Middle East and vocational training for them;
  14. Maternal education and child mortality;
  15. The role of traditional and religious education.

In addition, this Special Issue showcases evidence from six papers developed by early-career researchers supported by the Kenya Analytical Programme for Forced Displacement (KAP-FD). The project was funded by the World Bank. The KAP-FD project is an initiative that aims to generate detailed socioeconomic panel data, evaluate interventions, and provide recommendations to enhance the livelihoods of refugee and host communities. It comprises three main components: (i) filling data and evidence gaps to inform solutions; (ii) impact evaluation; and (iii) capacity building and collaboration. The insights gained from these six KAP-FD research papers contribute to filling the gaps in the evidence required for policymaking and programs, including guiding private sector investment through targeted interventions for those people experiencing forced displacement. The area of this topic that the papers have focused on is the economic impact of forced displacement, assessing labor market outcomes, drivers of resilience among female- and male-headed households, poverty and vulnerability affecting forcibly displaced households and their coping mechanisms, women's empowerment, and household welfare through a gendered lens. The AERC acknowledges the generous support of the World Bank in facilitating the authors’ capacity to construct their research and gather the evidence used in this forced displacement project.

Methodological Rigor

Papers submitted to this Special Issue adopted econometric techniques and computable general equilibrium models. The methodological rigor they employed ensures that the findings are robust, replicable, and applicable to policy formulation. With evidence gathered from data sets for several countries, we aim to provide a comprehensive explanation of the challenges and opportunities facing human capital development across various African contexts.

Target Audience

This Special Issue targets policymakers, academics, practitioners, and stakeholders involved in education, healthcare, labor markets, and economic development. The research findings, insights, and recommendations derived from the research will be valuable for designing effective interventions and policies that promote human capital development in Africa.

Conclusion

Arising from contexts where economic growth failed to be inclusive since the turn of the 21st century, this Special Issue seeks to highlight the critical importance of human capital development in achieving sustainable economic growth and social progress in African countries. By addressing the themes outlined above, we will provide a platform for shedding context-specific insights that will then inform social sector policymaking. We believe that the findings from these papers will significantly contribute to the ongoing discourse on economic development and human capital in Africa, thereby influencing both academic research, policy and practical applications.

We look forward to receiving positive responses to this Special Issue and express our gratitude for the opportunity to contribute to the esteemed journal Economies.

Dr. Abbi M. Kedir
Prof. Dr. Lant Pritchett
Prof. Dr. Tomson Ogwang
Guest Editors

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Keywords

  • human capital development
  • foreign direct investment
  • household income growth
  • public investment
  • migration

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Published Papers (9 papers)

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Research

25 pages, 563 KiB  
Article
Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
by Henry Chukwuemeka Edeh, Alexander Uchenna Nnamani and Jane Oluchukwu Ozor
Economies 2025, 13(5), 116; https://doi.org/10.3390/economies13050116 - 22 Apr 2025
Viewed by 262
Abstract
In this study, we provide the first estimates of the effect of COVID-19 (COVID-19 legal restrictions) on catastrophic medical expenditure and forgone medical care in Africa. Data for this study were drawn from the 2018/19 Nigeria General Household Survey (NGHS) panel and the [...] Read more.
In this study, we provide the first estimates of the effect of COVID-19 (COVID-19 legal restrictions) on catastrophic medical expenditure and forgone medical care in Africa. Data for this study were drawn from the 2018/19 Nigeria General Household Survey (NGHS) panel and the 2020/21 Nigeria COVID-19 National Longitudinal Phone Survey panel (COVID-19 NLPS). The 2020/21 COVID-19 panel survey sample was drawn from the 2018/19 NGHS panel sample monitoring the same households. Hence, we leveraged a rich set of pre-COVID-19 and COVID-19 panel household surveys that can be merged to track the effect of the pandemic on welfare outcomes. We found that the COVID-19 legal restrictions decreased catastrophic medical expenditure (measured by out-of-pocket (OOP) expenditures exceeding 10% of total household expenditure). However, the COVID-19 legal restrictions increased the incidences of forgone medical care. The results showed a consistent positive effect on forgone medical care across waves one and two, corresponding to full and partial implementation of COVID-19 legal restrictions, respectively. However, the negative effect on catastrophic medical spending was only observed when the COVID-19 legal restrictions were fully in force, but the sign reversed when the restriction enforcement became partial. Moreover, our panel regression analyses revealed that having health insurance is associated with a reduced probability of incurring CHE and forgoing medical care relative to having no health insurance. We suggest that better policy design in terms of expanding the depth and coverage of health insurance will broaden access to quality healthcare services during and beyond the pandemic periods. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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22 pages, 936 KiB  
Article
The Importance of Investing in the First 1000 Days of Life: Evidence and Policy Options
by Lydia Kemunto Onsomu and Haron Ng’eno
Economies 2025, 13(4), 105; https://doi.org/10.3390/economies13040105 - 8 Apr 2025
Viewed by 378
Abstract
The first 1000 days of life starts from conception to a child’s second birthday. Research suggests that the period is critical for cognitive, physical, and emotional development. Investments in maternal and child healthcare during this period have a profound impact on long-term health, [...] Read more.
The first 1000 days of life starts from conception to a child’s second birthday. Research suggests that the period is critical for cognitive, physical, and emotional development. Investments in maternal and child healthcare during this period have a profound impact on long-term health, educational attainment, and economic productivity. This study examined the impact of such investments on child health outcomes in Kenya, using data from the 2015/2016 Kenya Integrated Household Budget Survey (KIHBS). Key areas of focus included maternal healthcare, early antenatal care, skilled delivery, exclusive breastfeeding, proper weaning practices, immunization, and the timely treatment of childhood illnesses. Using the Cox regression hazard model, the study revealed that twins faced a higher risk of mortality compared to single births, while firstborns were less likely to die before their fifth birthday; larger household sizes were associated with reduced child mortality, and children in female-headed households had a lower likelihood of dying, likely due to better adherence to proper health and nutritional practices. Maternal health conditions, the place of delivery, and assistance during childbirth significantly influenced survival, with government health facility deliveries yielding better outcomes than homebirths. This study emphasizes the importance of educating pregnant women and mothers on health risks and public health protocols during this critical period. Strengthening healthcare systems and promoting equitable access to essential services during the first 1000 days could improve child survival rates and enhance long-term economic productivity. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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21 pages, 915 KiB  
Article
Access to Livelihood Assets and Vulnerability to Lower Levels of Well-Being in Kakuma Refugee Camp, Kenya
by Mary Nyambura Kinyanjui
Economies 2025, 13(4), 103; https://doi.org/10.3390/economies13040103 - 4 Apr 2025
Viewed by 441
Abstract
This paper investigates the role that access to livelihood assets plays in reducing vulnerability to lower levels of well-being, especially for camp-based refugees. We develop the multidimensional vulnerability index using the 2019 Kakuma socioeconomic survey to provide a comprehensive and holistic approach to [...] Read more.
This paper investigates the role that access to livelihood assets plays in reducing vulnerability to lower levels of well-being, especially for camp-based refugees. We develop the multidimensional vulnerability index using the 2019 Kakuma socioeconomic survey to provide a comprehensive and holistic approach to measuring vulnerability. The fractional regression results suggest that the household head’s age and education level determine the vulnerability of refugees to lower levels of well-being. In addition, access to finance and employment substantially reduces refugees’ vulnerability. Although remittances from abroad are a prevalent source of finance among refugees, we find that remittances from abroad only lessen the prevalence of vulnerability by 1.1%. Therefore, we recommend camp refugees adopt more self-reliant ways of accessing sustainable finance. The multidimensional vulnerability index reveals a high level of food insecurity in camps caused by the influx of refugees over the years. We recommend the inclusion of refugees in farming and training on climate change to provide sustainable solutions around food security to them and the host community. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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21 pages, 1198 KiB  
Article
The Role of Formal and Informal Financing in Refugee Self-Employment: The Case of Urban Kenya
by Linet Nyanchama Arisa
Economies 2025, 13(4), 100; https://doi.org/10.3390/economies13040100 - 2 Apr 2025
Viewed by 392
Abstract
Considering refugees’ employment challenges in their host countries, they often need to create jobs by starting ventures and embracing self-employment. However, this requires financing. This study seeks to assess the roles of formal and informal financing in self-employment while also looking at the [...] Read more.
Considering refugees’ employment challenges in their host countries, they often need to create jobs by starting ventures and embracing self-employment. However, this requires financing. This study seeks to assess the roles of formal and informal financing in self-employment while also looking at the drivers of financing decisions and self-employment among refugees in an urban setting. Using the extension of the Blinder–Oaxaca decomposition pioneered by Fairlie, this study found informal financing to be significantly associated with an individual’s decision to be self-employed, while formal financing is not. Male refugees who access informal financing have a higher probability of embracing self-employment than refugee women and Kenyan nationals; this calls for actions that encourage forming community-based organizations that promote affirmative action and steer the use of informal finance. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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17 pages, 750 KiB  
Article
From Classroom to Workplace: The Combined Effects of Cognitive and Non-Cognitive Skills on Youth Labor Market Outcomes in Kenya
by Carol Bisieri Onsomu, John Njenga Macharia and Stephie Muthoni Mwangi
Economies 2025, 13(4), 92; https://doi.org/10.3390/economies13040092 - 28 Mar 2025
Viewed by 439
Abstract
The evolving labor environment underscores the critical role of cognitive and non-cognitive (soft) skills in fostering workforce adaptability and enhancing labor market outcomes. This study investigates the combined influence of these skills on the probability of employment, focusing on the Kenyan labor market, [...] Read more.
The evolving labor environment underscores the critical role of cognitive and non-cognitive (soft) skills in fostering workforce adaptability and enhancing labor market outcomes. This study investigates the combined influence of these skills on the probability of employment, focusing on the Kenyan labor market, where high youth unemployment and job market mismatches persist despite government interventions and education sector reforms. Traditionally, emphasis has been placed on cognitive skills, with limited integration of non-cognitive skills into educational curricula, exacerbating the disconnect between youth competencies and market demands. Using binary logistic regression, this study evaluates factors influencing youth employment, highlighting the complementarity of cognitive and non-cognitive skills. Findings reveal that individuals possessing a blend of these skills have higher employment prospects, with notable improvements for young women possessing agreeableness and digital literacy. Additionally, factors such as marital status and higher education levels positively influence employability. These results underscore the equal importance of personality traits and cognitive abilities in labor market success. Policymakers are urged to prioritize curriculum reforms that integrate non-cognitive skill development and encourage employers to include assessments of these skills in hiring practices to address persistent labor market mismatches. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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20 pages, 338 KiB  
Article
Gender Gaps, Financial Inclusion and Social Integration in Kakuma Refugee Camp, Kenya
by Afrika Onguko Okello
Economies 2025, 13(3), 75; https://doi.org/10.3390/economies13030075 - 14 Mar 2025
Viewed by 448
Abstract
The integration or resettlement efforts aimed at self-reliance of refugees are requisite for their adaptation to social and economic shocks and consequently to their human development and contribution to economic growth. This study analyses the drivers of financial inclusion and social integration and [...] Read more.
The integration or resettlement efforts aimed at self-reliance of refugees are requisite for their adaptation to social and economic shocks and consequently to their human development and contribution to economic growth. This study analyses the drivers of financial inclusion and social integration and estimates the respective gender gap among households in Kakuma Refugee Camp, Kenya. Based on a 2019 socio-economic survey dataset, the study constructs indices to reveal the extent of financial inclusion and social integration. Using the ordered logistic regression, factors such as earning wages, asset accumulation, food security, social capital, education, and access to information demonstrate significant explanatory power for financial inclusion and social integration. The Blinder-Oaxaca decomposition technique for measuring the gender gap reveals that women are significantly better off with respect to financial inclusion compared to men. These results suggest that gendered financial inclusive and social integration programs can build refugee self-reliance. Accordingly, government and development partners should promote gender-inclusive strategies for refugees in Kenya. This study contributes to the literature on refugee financial inclusion and social integration by offering gender-specific insights into their barriers and enablers in protracted displacement contexts. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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20 pages, 455 KiB  
Article
Maternal Education, Economic Empowerment and Infant Mortality in Burkina Faso
by Lamissa Barro, Aïcha Tiendrebeogo, Issa Nana and Landry Paul Armand Mawuvi Ky
Economies 2025, 13(3), 73; https://doi.org/10.3390/economies13030073 - 13 Mar 2025
Viewed by 415
Abstract
Education levels in Burkina Faso, especially among women, remain low despite efforts made by government authorities and development partners to implement priority area 4 of the Sustainable Development Goals (SDGs). This situation presents difficulties for women in terms of their being economically and [...] Read more.
Education levels in Burkina Faso, especially among women, remain low despite efforts made by government authorities and development partners to implement priority area 4 of the Sustainable Development Goals (SDGs). This situation presents difficulties for women in terms of their being economically and socially empowered. At the same time, the infant mortality rate in Burkina Faso is higher than the average for sub-Saharan Africa. This study analyses the combined effect of education level and women’s economic empowerment on infant mortality in Burkina Faso. It uses a linear probability model with instrumental variables approach to demographic and health survey data. The results highlight the positive impact of women’s level of education, understood in terms of literacy, and of their economic empowerment, in terms of probability of gain and decision-making power. Nevertheless, the impact of mothers’ level of economic empowerment remains mixed. Based on the findings of this study, policymakers should strengthen policies related to girls’ education, while improving the education system by integrating vocational training into the school curriculum. For better child well-being, mothers’ economic empowerment policies must be accompanied by legal measures aimed at eradicating traditional gender norms and sociocultural values restrict which limit their decision-making power. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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22 pages, 654 KiB  
Article
Gendered Analysis of the Effect of Displacement on Labor Market Outcomes: A Focus on Nairobi County, Kenya
by Celina Katunda Mutie and John Njenga Macharia
Economies 2025, 13(2), 51; https://doi.org/10.3390/economies13020051 - 14 Feb 2025
Viewed by 647
Abstract
This study investigates how socio-economic characteristics, migration status, and country of origin influence labor market outcomes in Nairobi County, Kenya. By estimating logit and Tobit models using data from the Kenya Refugee and Host Household Survey (KRHHS), we find that age is positively [...] Read more.
This study investigates how socio-economic characteristics, migration status, and country of origin influence labor market outcomes in Nairobi County, Kenya. By estimating logit and Tobit models using data from the Kenya Refugee and Host Household Survey (KRHHS), we find that age is positively associated with the likelihood of being employed and higher incomes, but this relationship diminishes beyond a certain point. Gender disparities are pronounced, with women being less likely to be employed and generally earning less than men. Larger households are associated with lower employment probabilities, reflecting greater domestic responsibilities for household heads. Local community members are more likely to be employed and earn more than refugees, who face substantial labor market barriers such as legal restrictions and lack of social networks. Having a university education is associated with being employed with higher earnings, compared to workers with either primary or secondary education. Having never been married is positively associated with being employed. Employment and income vary significantly by country of origin, highlighting the complex interplay between integration and discrimination factors in local communities. These findings underscore the need to address educational and gender inequalities that prevail between refugees and local communities. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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19 pages, 300 KiB  
Article
Determinants of Women Empowerment: Case of Refugee Women Living in Nairobi Kenya
by Judy Kaaria and Immaculate Kathomi Murithi
Economies 2025, 13(2), 35; https://doi.org/10.3390/economies13020035 - 1 Feb 2025
Viewed by 1287
Abstract
This study investigates the determinants of women empowerment among refugee women living in Nairobi, Kenya. First, the study constructs an index to examine empowerment drivers using data from the Refugee and Host Household Survey (RHHS) 2021. A fractional logit regression model was employed [...] Read more.
This study investigates the determinants of women empowerment among refugee women living in Nairobi, Kenya. First, the study constructs an index to examine empowerment drivers using data from the Refugee and Host Household Survey (RHHS) 2021. A fractional logit regression model was employed in the study. The results obtained show that the incidence of refugee women empowerment among refugees living in Nairobi was six percent. In addition, the study finds evidence that age; the gender of the household head; the education level of the refugee woman; employment status; and the education of the household head play substantial roles in enabling women empowerment. Conversely, marital statuses (divorced/separated/widowed and single/never married) and religious affiliations (Muslim) hinder women empowerment. Efforts geared towards improving wage employment and education are likely to empower refugee women. The study emphasizes the recognition of the role played by women in household income through care work. Full article
(This article belongs to the Special Issue Human Capital Development in Africa)
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