The association between educational attainment and household asset wealth: evidence from a national survey in Somaliland

Background In emerging and fragile economies, identifying the correlates of socioeconomic status is critical for targeted poverty reduction. This study investigates the association between educational attainment and household asset wealth in Somaliland, examining the relationship between human capital, geographic location, and spatial inequality. Unlike previous studies often limited to qualitative or small-scale regional surveys, this research addresses a significant empirical gap by providing a large-scale, nationwide econometric analysis. Methods Utilizing the Somaliland Health and Demographic Survey (SLHDS 2020) dataset of 11,891 households, this study employs Chi-square tests and Ordered Logistic Regression—incorporating survey weights—to model predictors of wealth quintiles. The analysis was conducted using R (version 4.3.1), controlling for educational attainment, administrative region, residence type, and household size. Model diagnostics, including the parallel odds assumption, were verified. Results The findings demonstrate a significant "education premium" associated with asset accumulation. Individuals with higher education exhibit a 26.03-fold increase in the cumulative odds of belonging to a higher wealth category (OR = 26.03, p < 0.001) relative to those with no formal schooling. Spatially, households in the Sahil and Sanaag regions show higher wealth odds (OR = 1.65 and 1.58, respectively) compared to the interior regions. Crucially, the model reveals that rural residency shows a positive association with asset wealth (OR = 1.04, 95 % CI: 0.98–1.20), highlighting the importance of human capital and livestock-based assets in rural prosperity. Conclusion This research demonstrates that both educational attainment and geographic location are key independent correlates of household wealth in Somaliland. While human capital is a powerful associate of social mobility, regional infrastructure and spatial factors continue to play a decisive role in asset accumulation. Development frameworks should therefore prioritize the expansion of quality secondary and higher education alongside regional equity to promote inclusive socioeconomic development. By moving beyond descriptive regional analyses, this study offers a precise quantification of the education premium and contributes new evidence regarding the "rural-urban paradox," providing a robust empirical baseline for inclusive development policy.26