Thursday 25 August 2011

Earnings returns to the British education expansion

UCD Centre for Economic Research working paper series WP11/11

by Paul J Devereux and Wen Fan

Abstract

We study the effects of the large expansion in British educational attainment that took place for cohorts born between 1970 and 1975. Using the Quarterly Labour Force Survey, we find that the expansion caused men to increase education by about a year on average and gain about 8% higher wages; women obtained a slightly greater increase in education and a similar increase in wages. Clearly, there was a sizeable gain from being born late enough to take advantage of the greater educational opportunities offered by the expansion. Treating the expansion as an exogenous increase in educational attainment, we obtain instrumental variables estimates of returns to schooling of about 6% for both men and women.

Full paper (PDF 39pp)

Published by University College Dublin in June 2011
NOTE: I cannot find an ISBN for this


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