Should I stay or should I go? Educational choices and earnings: An empirical study for Portugal
AbstractWe analyse educational choices and earnings of individuals at two different levels in the Portuguese educational system. At each exit we consider two decisions: the decision to continue studying and the employment decision. We find empirical support for the existence of selectivity bias as the errors of the earnings functions are in general correlated with the disturbances of the decision functions. The obtained rates of return to education vary between 2.4 and 9.4 percent, depending on whether or not selectivity and quantity effects are excluded from the computations. Note that selectivity represents three quarters of this difference. Copyright Springer-Verlag Berlin Heidelberg 2003
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Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 16 (2003)
Issue (Month): 2 (05)
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- Modesto, Leonor, 2000. "Should I Stay or Should I Go? Educational Choices and Earnings: An Empirical Study for Portugal," IZA Discussion Papers 230, Institute for the Study of Labor (IZA).
- I20 - Health, Education, and Welfare - - Education - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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- Goulart, P. & Bedi, A.S., 2005.
"Child labour and educational success in Portugal,"
ISS Working Papers - General Series
1765019174, International Institute of Social Studies of Erasmus University (ISS), The Hague.
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