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.
Copyright Owner
10.1086/666948
Copyright Date
2012
Language
en
File Format
application/pdf
Recommended Citation
King, Elizabeth M.; Montenegro, Claudio E.; and Orazem, Peter F., "Economic Freedom, Human Rights, and the Returns to Human Capital: An Evaluation of the Schultz Hypothesis" (2012). Economics Publications. 268.
https://lib.dr.iastate.edu/econ_las_pubs/268
Comments
This article is from Economic Development and Cultural Change 61 (2012): 39, doi: 10.1086/666948. Posted with permission.