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Cross Country Evidence on the Returns to Education: Patterns and Explanations
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This paper examined the relationship across countries between these returns and a range of controls that can be grouped into three broad areas (i) supply factors, (ii) demand factors, and (iii) governmental policies and institutional factors).Abstract:
This Paper examines cross-country variations in the return to schooling for men and women and considers some of the stylised facts that have emerged from the extensive international literature on private returns to schooling. We examine the relationship across countries between these returns and a range of controls that can be grouped into three broad areas (i) supply factors, (ii) demand factors, and (iii) governmental policies and institutional factors. We find that the returns are decreasing in both labour force participation and, in some cases, in the average level of schooling in the population. In the multivariate analysis the only education variables that consistently matter are the proportions completing primary or third level education, which has negative and positive effects respectively. Standard measures of openness such as trade volume have positive effects, and we also find that measures of protection raise the return to schooling. Net inflows of foreign investment are associated with lower schooling returns - a result difficult to reconcile with the argument that capital is complementary to high skill labour and hence increases the skill premium.read more
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Human capital in a global and knowledge-based economy
TL;DR: In this paper, the authors construct estimates of the private and social rates of return on schooling for fourteen EU countries using micro-econometric estimates of Mincerian wage equations, the results of cross-country growth regressions and OECD data on educational expenditures, tax rates and social benefits.
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Returns to Skills and the Speed of Reforms: Evidence from Central and Eastern Europe, China, and Russia
Belton M. Fleisher,Belton M. Fleisher,Klara Sabirianova Peter,Klara Sabirianova Peter,Klara Sabirianova Peter,Xiaojun Wang +5 more
TL;DR: This paper explored the pace of increase in returns to schooling during the transition from planning to market over time across a number of Central and Eastern European countries, Russia, and China, using metadata from 33 studies of 10 transition economies covering a period from 1975 through 2002.
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Returns to skills and the speed of reforms: Evidence from Central and Eastern Europe, China, and Russia
TL;DR: In this article, the authors explore the growth in returns to schooling during transition across Central and Eastern European countries, Russia, and China, and investigate the relative importance of the slow decay of the effects of wage grids compared to the return to the ability that educated individuals have in taking advantage of economic disequilibria caused by reform.
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Education, cognitive skills and earnings in comparative perspective
TL;DR: The authors found that between 32 and 63 percent of the education effect is cognitive, depending on the country and operationalization of cognitive skills, with a larger fraction of the schooling effect being captured by the work-specific component in Germany and the Netherlands than in the US and the UK.
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Dispersion in the Economic Return to Schooling
TL;DR: In this paper, the authors extend the standard human capital earnings function to include dispersion in the rate of return to schooling by treating the return as a random coefficient, which is consistent with educational expansion not leading to a disproportionate inflow of low ability individuals into the system.
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International Data on Educational Attainment Updates and Implications
TL;DR: In this paper, the authors presented a data set that improves the measurement of educational attainment for a broad group of countries, and extended their previous estimates for the population over age 15 and over age 25 up to 1995 and provided projections for 2000.
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Unemployment: Macroeconomic Performance and the Labour Market
TL;DR: In this article, the authors present a review of the macroeconomics of the post-war unemployment in OECD countries and discuss the policies to cut the job search duration and the structure of the job market.
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Changes in Relative Wages, 1963–1987: Supply and Demand Factors
Lawrence F. Katz,Kevin M. Murphy +1 more
TL;DR: A simple supply and demand framework is used to analyze changes in the U.S. wage structure from 1963 to 1987 as discussed by the authors, showing that rapid secular growth in the demand for more-educated workers, "more-skilled" workers, and females appears to be the driving force behind observed changes in wage structure.
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Returns to investment in education: A global update
TL;DR: In this paper, the authors discuss methodological issues surrounding those estimates and confirm that primary education continues to be the number one investment priority in developing countries, and also show that educating females is marginally more profitable than educating males, and that the academic secondary school curriculum is a better investment than the technical/vocational tract.
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The causal effect of education on earnings
TL;DR: This paper surveys the recent literature on the causal relationship between education and earnings and concludes that the average (or average marginal) return to education is not much below the estimate that emerges from a standard human capital earnings function fit by OLS.