This thesis takes a closer look at the effect of education on the living standards in Zimbabwe. I have used the wealth index constructed by Measure Demographic and Health Surveys (DHS) to see how education affects wealth. Looking at the relationship using a simple OLS is likely to produce unreliable results due to omitted variables. In order to look at the causal effect, I will reduce these issues by taking advantage of the timing of a post-independence education reform. I will use the strategy of the regression discontinuity design and use whether or not an individual was above or below secondary school age when the reform was implemented as an instrument for education level. I find the education reform to have a significant and large effect on school attendance. Furthermore, for the population en masse I find a positive effect of education on wealth. Looking at the heterogeneous effects among different subgroups of the population, I find that the effect of education on wealth is significantly stronger for the rural and the rural female population than for the population en masse. For the female and the urban population I do not find a significant increase in wealth due to education. Surprisingly, I find suggestive result of a negative effect of education on wealth for the rural female population. I go on to look at employment variables to try to detect possible mechanism behind the results. For the population as a whole I find a positive effect of education on the probability of being employed. Looking at the type of employment I find education to increase the probability of formal employment in the sense of getting paid in cash. This effect is stronger for females then for men. However, I find education to increase the probability of working on own land which is associated with informal employment and lower wealth. I also fail to find an effect on the probability of being self-employed. It is important to note that I, for wealth, did not find statistically significant differences between the 2SLS and OLS estimates, and therefore chose to interpret the OLS estimates as being causal. The positive effects on wealth and employment are in line with previous conducted research from similar developing country contexts.