This paper examines the relationship between poverty and education in Uganda in the 1990s. It
shows how growth in living standards and poverty reduction during that period was fastest for
more educated households. Income growth at the household level is disaggregated into earnings
growth from three kinds of activity: farming, non-agricultural self-employment and wage
employment. The direct productivity effects of education on earnings from each income source
are estimated and found to have increased over time. The role of education in determining access
to different sources of income is also assessed.