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The external returns to education: UK evidence using repeated cross-sections

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  • Kirby, Simon
  • Riley, Rebecca

Abstract

Augmenting a Mincerian earnings function with industry level data we estimate the external return to schooling for a repeated cross-section of individuals in the UK over the period 1994-2004. For men age 30-49 we find that a one year increase in the industry average level of schooling is associated with an increase in individual wages of 2.6 to 3.9%, around 2 to 3 fifths of the private return to schooling. We illustrate the sensitivity of external return estimates to industry ICT use and union density, and individuals' own level of schooling.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 4 (August)
Pages: 619-630

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Handle: RePEc:eee:labeco:v:15:y:2008:i:4:p:619-630

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Human capital Education Externalities Spillovers Growth;

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References

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Citations

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Cited by:
  1. Andr�s Rodr�guez-Pose & Vassilis Tselios, 2012. "Welfare regimes and the incentives to work and get educated," Environment and Planning A, Pion Ltd, London, vol. 44(1), pages 125-149, January.
  2. Filiztekin, Alpay, 2011. "Social returns to education in a developing country," MPRA Paper 35124, University Library of Munich, Germany.
  3. Rasmus Thönnessen & Erich Gundlach, 2013. "The size of human capital externalities: cross-country evidence," Public Choice, Springer, vol. 157(3), pages 671-689, December.
  4. Nils Braakmann, 2008. "Fields of training, plant characteristics and the gender wage gap in entry wages among skilled workers– Evidence from German administrative data," Working Paper Series in Economics 90, University of Lüneburg, Institute of Economics.
  5. Strawinski, Pawel, 2009. "External Return to Education in Europe," IRISS Working Paper Series 2009-09, IRISS at CEPS/INSTEAD.
  6. Wen Fan & Yuanyuan Ma, 2012. "Estimating the External Returns to Education: Evidence from China," Working Papers 201220, School Of Economics, University College Dublin.
  7. Uschi Backes-Gellner & Christian Rupietta & Simone N. Tuor, 2011. "Educational Spillovers at the Firm Level: Who Benefits from Whom?," Economics of Education Working Paper Series 0065, University of Zurich, Institute for Strategy and Business Economics (ISU).
  8. Michael Landesmann & Sebastian Leitner & Robert Stehrer & Terry Ward, 2009. "Skills and Industrial Competitiveness," wiiw Research Reports 356, The Vienna Institute for International Economic Studies, wiiw.
  9. Simone N. Tuor Sartore & Uschi Backes-Gellner, 2012. "Another Effect of Group Diversity: Educational Composition and Workers’ Pay," Economics of Education Working Paper Series 0078, University of Zurich, Institute for Strategy and Business Economics (ISU).

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