Analysing the Effect of Education on Income Dynamics in Togo

The objective of this study is to analyse the effect of education on the income‐level dynamics in Togo. The data used are pseudo‐panels constructed from survey data from the Unified Questionnaire of Basic Welfare Indicators (QUIBB) of 2006, 2011 and 2015 and the Harmonized Survey of Household Living Conditions (EHCVM) of 2021 of Togo. The methodological approaches used are the generalized moment method and quantile regression for panel data. The main results show that there is no linear relationship between education level and overall income, with the relationship following an inverted U‐shaped curve. However, the results show a positive and significant linear relationship between higher education and income levels. Additionally, investment in education strengthens the impact of education on income. Looking at the income quantiles, there is a significant positive relationship between education and income in the third quantile.