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Returns to education and wage equations

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Author Info
Pedro Telhado Pereira
Pedro Silva Martins

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Abstract

The paper shows why considering a number of education-dependent covariates in a wage equation decreases the coefficient of education in that equation. This result is illustrated empirically with a meta-analysis for Portugal. The education coefficient decreases when covariates are used that can be considered post-education decisions; on the other hand, it is independent of sample size, tenure and whether hourly or monthly wages are used. These results support the use of a simple specification of the Mincer equation for the study of the total returns to education.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 6 (April)
Pages: 525-531
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:525-531

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Richard B. Freeman & James L. Medoff, 1980. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March. [Downloadable!] (restricted)
  3. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
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  1. Pedro Martins & Yong Yang, 2009. "The impact of exporting on firm productivity: a meta-analysis of the learning-by-exporting hypothesis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(3), pages 431-445, October. [Downloadable!] (restricted)
  2. Livanos, Ilias & Pouliakas, Konstantinos, 2009. "Wage Returns to University Disciplines in Greece: Are Greek Higher Education Degrees Trojan Horses?," MPRA Paper 14159, University Library of Munich, Germany, revised 21 Jul 2009. [Downloadable!]
    Other versions:
  3. Shabbar Jaffry & Yaseen Ghulam & Vyoma Shah, 2007. "Returns to Education in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 833-852. [Downloadable!]
  4. Corrado Andini & Pedro Telhado Pereira, 2007. "Full-time Schooling, Part-time Schooling, and Wages: Returns and Risks in Portugal," IZA Discussion Papers 2651, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Massimiliano Bratti & Robin Naylor & Jeremy Smith, 2005. "Variations in the Wage Returns to a First Degree: Evidence from the British Cohort Study 1970," IZA Discussion Papers 1631, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Pedro S. Martins & Yong Yang, 2007. "The Impact of Exporting on Firm Productivity: A Meta-Analysis," Working Papers 6, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. [Downloadable!]
  7. Laia Castany & Enrique Lopez-Bazo & Rosina Moreno, 2007. "Decomposing differences in total factor productivity across firm size," IREA Working Papers 200705, University of Barcelona, Research Institute of Applied Economics, revised Mar 2007. [Downloadable!]
    Other versions:
  8. Pouliakas, Konstantinos & Livanos, Ilias, 2008. "The Gender Wage Gap as a Function of Educational Degree Choices in an Occupationally Segregated EU Country (Greece)," MPRA Paper 14168, University Library of Munich, Germany, revised 10 Dec 2009. [Downloadable!]
  9. Sloane, Peter J. & O'Leary, Nigel C., 2004. "The Return to a University Education in Great Britain," IZA Discussion Papers 1199, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Corrado Andini, 2007. "A Dynamic Mincer Equation with an Application to Portuguese Data," IZA Discussion Papers 2897, Institute for the Study of Labor (IZA). [Downloadable!]
  11. María Arrazola & José de Hevia, 2006. "Gender Differentials in Returns to Education in Spain," Education Economics, Taylor and Francis Journals, vol. 14(4), pages 469-486, December. [Downloadable!] (restricted)
  12. Bratti, Massimiliano & Naylor, Robin & Smith, Jeremy, 2007. "Different returns to different degrees? Evidence from the British Cohort Study 1970," The Warwick Economics Research Paper Series (TWERPS) 783, University of Warwick, Department of Economics. [Downloadable!]
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