Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

10-2012

Journal or Book Title

Economic Development and Cultural Change

Volume

61

Issue

1

First Page or Article ID Number

39

Last Page

72

DOI

10.1086/666948

Abstract

Hundreds of studies measure the private returns to schooling, most focusing on a single country or a subset of countries. Following Mincer (1974), inference on returns to schooling and work experience are derived from the regression coefficients of log earnings on years of schooling and quadratic terms in age. Due mainly to George Psacharopolous and his colleagues (Psacharopoulos 1973, 1994; Psacharopoulos and Patrinos 2004), we have compilations of estimated returns to schooling across many countries. These estimates show remarkable consistencies. Despite differences in estimation methods, specifications, and level of economic development, virtually all studies show that earnings rise with years of schooling and increase at a declining rate in age or work experience.1 In almost all data sets, the largest percentage annual wage gains are captured by the youngest workers. The wage gain from additional experience gets smaller and may even turn negative with age.

Comments

This article is from Economic Development and Cultural Change 61 (2012): 39, doi: 10.1086/666948. Posted with permission.

Copyright Owner

10.1086/666948

Language

en

File Format

application/pdf

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