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The causal effect of education on earnings

01 Jan 1999-Handbook of Labor Economics (Elsevier)-pp 1801-1863
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.
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TL;DR: The Herculaneum, the temple to the goddess of fire, the patron of the metallurgists, is the only building that still stands as it always was, untouched by time or reconstruction as mentioned in this paper.
Abstract: We find prejudices in favor of theory, as far back as there is institutionalized science. Plato and Aristotle frequented the Academy at Athens. That building is located on one side of the Agora, or market place. It is almost as far as possible from the Herculaneum, the temple to the goddess of fire, the patron of the metallurgists. It is ‘on the other side of the tracks’. True to this class distinction, we all know a little about Greek geometry and the teachings of the philosophers. Who knows anything about Greek metallurgy? Yet perhaps the gods speak to us in their own way. Of all the buildings that once graced the Athenian Agora, only one stands as it always was, untouched by time or reconstruction. That is the temple of the metallurgists. The academy fell down long ago. It has been rebuilt–partly by money earned in the steel mills of Pittsburgh. (Hacking 1983)

1 citations

Journal ArticleDOI
07 Jan 2017

1 citations

Posted Content
TL;DR: In this article, the notion of cohesion sociale was proposed as a forme d?externalite positive engendree par l?investissement educatif, and empiriques showed that there exists a correlation positive entre les variables representant les different dimensions of the cohesion social and les niveaux de formation individuels.
Abstract: Nous proposons de considerer la notion de cohesion sociale comme une forme d?externalite positive engendree par l?investissement educatif. Nos resultats empiriques montrent qu?il existe une correlation positive entre les variables representant les differentes dimensions de la cohesion sociale et les niveaux de formation individuels. Ainsi, nous suggerons qu?une amelioration generale du niveau de formation dans un pays devrait en meme temps ameliorer la cohesion sociale, mais l?importance de cet effet depend du type de pays considere.

1 citations

Journal Article
TL;DR: This article explored the relationship between income ine-quality and educational attainment and found that there is not a consistent pattern of change across the entire panel of countries, which suggests that the Paradox of Progress might not be universally pertinent.
Abstract: Education is widely understood to impact earnings, but the dynamics of this relationship specifically, the returns to education are important to consider in depth. Through a synthesis of human capital theory and the Paradox of Progress, which relates income ine-quality to educational attainment, I explore how the returns to education have changed over time. I use 2002 and 2012 International Social Survey Programme (ISSP) income and education data to first determine the returns to education within the United States, Germany, Poland, Slovenia, and Sweden with OLS regressions and then to comparatively analyze how the measure changed from one year to the next in each country. I find that there is not a consistent pattern of change across the entire panel of countries, which suggests that the Paradox of Progress might not be universally pertinent.

1 citations

Journal ArticleDOI
11 Nov 2020
TL;DR: In this paper, a hierarchical linear model of data from the Programa Internacional de Evaluacion de los Alumnos (PISA) was used to explore the current cross-country trends in the relationship between educational attainment, child labour and gender.
Abstract: espanolLa participacion de menores, tanto en tareas domesticas como no domesticas, los efectos del genero y los bajos logros academicos siguen siendo un reto para los paises de America Latina. A traves del modelaje lineal jerarquico de datos del Programa Internacional de Evaluacion de los Alumnos (PISA), este estudio busca explorar las tendencias entre los paises en la relacion entre los logros academicos, el trabajo infantil y el genero. Si bien el trabajo fuera del hogar suele tener un efecto sobre los logros academicos en todos los paises de Latinoamerica, tal como demuestran la importancia y la magnitud de las estadisticas; la participacion en las tareas del hogar es relevante unicamente en dos (Peru y Uruguay). Se ha visto que las ninas obtienen peores resultados que los ninos en un margen importante en toda Latinoamerica. La ultima parte del estudio busca ana-lizar los efectos de interaccion de genero y participacion en actividades laborales. Los resultados demuestran que el genero no es un factor moderador, lo que sugiere que la participacion en el trabajo o en el lugar de trabajo en si mismo (en el hogar o fuera de el) no influye ni contribuye a la desigualdad de generos en los resultados academicos. Los factores que explican la desigualdad en los resultados academicos se encuentran posiblemente en una esfera de influencia distinta que debe descifrarse mediante una investigacion empirica mas profunda. EnglishParticipation in child labour, in both household and non-household activities, gender effects and low educational attainment remain challenges for countries in Latin America. Through hierarchical linear modelling of data from the OECD’s Programme for International Student As-sessment (PISA), this study seeks to explore the current cross-country trends in the relationship between educational attainment, child labour and gender. While non-household labour is found to have an effect, as per statistical significance and the magnitude, on educational achievement across all Latin American countries; participation in household labour is significant in only two countries (Peru and Uruguay). Girls are found to underperform compared to boys by a significant margin across Latin America. The later part of the study seeks to examine the interaction effects of gender and participation in labour activities. Results show that gender has no moderating effect, suggesting that the participation in work itself or workspace (household or non-household) does not influence or contribute to gender inequality in education outcomes. The explanatory factors for gender inequality in education outcomes is potentially rooted in a different sphere of influence which needs to be deciphered through deeper empirical investigation portuguesA participacao de menores, tanto em tarefas domesticas como nao domesticas, os efeitos do genero e o baixo rendimento escolar continuam sendo um desafio para os paises da America Latina. Por meio de modelagem linear hierarquica de dados do Programa Internacional de Ava-liacao dos Alunos (PISA), este estudo busca explorar as tendencias entre os paises na relacao entre desempenho academico, trabalho infantil e genero. Embora o trabalho fora de casa tenda a afetar o desempenho academico em todos os paises da America Latina, como mostra a importân-cia e a magnitude das estatisticas, a participacao nas tarefas domesticas e relevante apenas em dois (Peru e Uruguai). Viu-se que as meninas obtem piores resultados que os meninos por uma margem significativa em toda a America Latina. A ultima parte do estudo busca analisar os efeitos da interacao de genero e a participacao nas atividades de trabalho. Os resultados mostram que o genero nao e um fator moderador, sugerindo que a participacao no trabalho ou no proprio local de trabalho (no lar ou fora dele) nao influencia nem contribui para a desigualdade de generos nos resultados academicos. Os fatores que explicam a desigualdade nos resultados academicos estao possivelmente em uma esfera de influencia diferente que deve ser decifrada por meio de uma pesquisa empirica mais profunda

1 citations