On the Measurement of Private Rates of Return to Education
AbstractIn many countries on the European continent, it is feared that public funding of tertiary education (university and non-university) leads to an undesirable redistribution of income "from the bottom up". The calculation of private rates of return is one way of answering this and other questions. This article proposes a new model for calculating private rates of return to education, which on the one hand takes into account the influence of existing wage structures and such institutional factors as the cost of education and the fiscal system, and on the other hand produces results that are relatively easy to interpret at the economic policy level. The first empirical results for Switzerland indicate that once educational costs have been deducted, wage-earning advantages would be too insignificant for it to be possible to speak of redistribution of income "from the bottom up" in any meaningful way.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 218 (1999)
Issue (Month): 5+6 (May)
Contact details of provider:
Postal: Licher Straße 74, 35394 Gießen
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
rates of return to education; human capital theory; labour market wages;
Find related papers by JEL classification:
- H0 - Public Economics - - General
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Wolfgang Becker, 1999. "Gesamtwirtschaftlicher Stellenwert der Humankapitalproduktion im Hochschulbereich in Westdeutschland," Discussion Paper Series 187, Universitaet Augsburg, Institute for Economics.
- Simone N. Tuor & Uschi Backes-Gellner, 2010. "Risk-return trade-offs to different educational paths: vocational, academic and mixed," International Journal of Manpower, Emerald Group Publishing, vol. 31(5), pages 495-519, September.
- Wolter, Stefan C. & Zbinden, André, 2001. "Rates of Return to Education: The View of Students in Switzerland," IZA Discussion Papers 371, Institute for the Study of Labor (IZA).
- Stanislav Klazar & Milan Sedmihradský & Alena Vančurová, 2001. "Returns of Education in the Czech Republic," International Tax and Public Finance, Springer, vol. 8(4), pages 609-620, August.
- Stefan C. Wolter & Stefan Denzler & Bernhard A. Weber, 2003. "Betrachtungen zum Arbeitsmarkt der Lehrer in der Schweiz," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(2), pages 305-319.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker).
If references are entirely missing, you can add them using this form.