Posted Content•
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.
Abstract: This paper surveys the recent literature on the causal relationship between education and earnings. I focus on four areas of work: theoretical and econometric advances in modelling the causal effect of education in the presence of heterogeneous returns to schooling; recent studies that use institutional aspects of the education system to form instrumental variables estimates of the return to schooling; recent studies of the earnings and schooling of twins; and recent attempts to explicitly model sources of heterogeneity in the returns to education. Consistent with earlier surveys of the literature, I conclude 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. Evidence from the latest studies of identical twins suggests a small upward "ability" bias -- on the order of 10%. A consistent finding among studies using instrumental variables based on institutional changes in the education system is that the estimated returns to schooling are 20-40% above the corresponding OLS estimates. Part of the explanation for this finding may be that marginal returns to schooling for certain subgroups -- particularly relatively disadvantaged groups with low education outcomes -- are higher than the average marginal returns to education in the population as a whole.
Citations
More filters
TL;DR: The authors found a sizable positive effect of English as a Second Dialect (ESD) funding on grade seven reading achievement among Aboriginal students, and used this data to identify its effect on academic achievement.
Abstract: Since the 1980s, the BC Ministry of Education has offered funding to support the language development of students who speak non-standard dialects of English. In practice, the students who are supported by this funding are almost exclusively Aboriginal, and English as a Second Dialect (ESD) funding has grown to be an important source of supplemental funding for Aboriginal students in many school districts. We exploit the staggered uptake of ESD funding by school districts to identify its effect on academic achievement. We find a sizable positive effect of ESD on grade seven reading achievement among Aboriginal students.
6 citations
01 Jan 2013
TL;DR: In this paper, Ciencias Economicas e Empresariais (DESenvolvimento Economico e Social e Economia Publica), 16 de Janeiro de 2014, Universidade dos Acores.
Abstract: Tese de Doutoramento, Ciencias Economicas e Empresariais (Desenvolvimento Economico e Social e Economia Publica), 16 de Janeiro de 2014, Universidade dos Acores.
6 citations
TL;DR: This article analyzed the effect of the economic crisis in 2008 and 2009 on individual training activities of different employee groups within establishments using a unique German linked employer-employee panel data set with detailed information of individual training history (WeLL-ADIAB).
Abstract: This paper analyses the effect of the economic crisis in 2008 and 2009 on individual training activities of different employee groups within establishments. We use a unique German linked employer–employee panel data set with detailed information on individual training history (WeLL-ADIAB). The so-called Great Recession can be seen as an exogenous, unexpected, and time-limited shock. Therefore, our quasi-experimental setting using Diff-in-Diff analyses reveals the causal impact of the crisis on the training participation and the number of training measures. We find a direct negative effect of the crisis on individual training activities in 2009 and 2010. The negative effect therefore sets in with a time lag and lasts until after the recession. Furthermore, the recession effect is stronger for employees in unskilled jobs than for employees in skilled jobs.
6 citations
Journal Article•
TL;DR: In this paper, the authors present the modernization concept with a goal of transformation from Humboldtian towards entrepreneurial university and discuss some possible solutions in measurement of the efficiency and effectiveness in the education system.
Abstract: The traditional, Humboldtian type of the university faces serious criticism. The answer of the European Commission to weaknesses is the modernization concept with a goal of transformation from Humboldtian towards entrepreneurial university. Modernization concept is the policy promoting three main reforms. Curricular reform symbolized by the Bologna Process is accompanied by the governance reform and the funding reform designed to enable change from input-oriented towards output-oriented budgeting. The discussion of concept and some possible solutions in measurement of the efficiency and effectiveness in the education system is given. Special attention is concentrated on rate of return measurement in education, particularly in tertiary education.
6 citations
TL;DR: In this article, the authors studied the returns of apprenticeship and vocational training for three early labor market outcomes, i.e., non-employment, permanent fulltime employment, and wages, for East and West German youths.
Abstract: We study the returns to apprenticeship and vocational training for three early labor market outcomes all measured at age 25 for East and West German youths: non-employment (i.e., unemployment or out of the labor force), permanent fulltime employment, and wages. We find strong positive effects of apprenticeship and vocational training. There are no significant differences for different types of vocational training, minor differences between East and West Germany and males and females, and no significant changes in the returns over time. Instrumental variable estimations confirm the regression results. The positive returns hold up even in poor labor market situations.
6 citations