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Returns to basic skills in central and eastern Europe

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  • Kevin Denny
  • Orla Doyle

Abstract

This article uses semi-parametric econometric techniques to investigate the relationship between basic skills and earnings in three post-communist countries: the Czech Republic, Hungary and Slovenia, using the International Adult Literacy Survey dataset. It finds that including a measure of basic skills in a Mincer model reduces the returns to education. In addition, using a partially linear model, in which log earnings is linear in education but is an arbitrary function of basic skills, it finds that this relationship is not well described by the common assumption of linearity at the tails of the distribution. Copyright (c) 2010 The Authors. Journal compilation (c) 2010 The European Bank for Reconstruction and Development.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 18 (2010)
Issue (Month): 1 (01)
Pages: 183-208

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Handle: RePEc:bla:etrans:v:18:y:2010:i:1:p:183-208

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Cited by:
  1. Antoni, Manfred & Heineck, Guido, 2012. "Do literacy and numeracy pay off? On the relationship between basic skills and earnings," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65404, Verein für Socialpolitik / German Economic Association.
  2. Giorgio Brunello & Elena Crivellaro & Lorenzo Rocco, 2012. "Lost in transition?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(4), pages 637-676, October.

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