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Earnings Effects of Different Components of Schooling: Human Capital versus Screening

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Groot, Wim
Oosterbeek, Hessel

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Abstract

In this paper, the authors divide actual years of schooling into effective years, repeated years, skipped years, inefficient routing years, and dropout years. Estimation of earnings functions reveals that this topology is statistically superior to the usual concepts of either actual or effective years of schooling. Based on the authors' distinction, they formulate tests that discriminate between the human capital theory and the screening hypothesis. The results give strong support to the human capital theory and refute the screening hypothesis. Copyright 1994 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 76 (1994)
Issue (Month): 2 (May)
Pages: 317-21
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Handle: RePEc:tpr:restat:v:76:y:1994:i:2:p:317-21

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  1. Joop Hartog & Hessel Oosterbeek, 1997. "Health, Wealth and Happiness: Why pursue a Higher Education?," Tinbergen Institute Discussion Papers 97-034/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  2. Trostel, P.A., 2000. "Micro Evidence on Human Capital as the Engine of Growth," The Warwick Economics Research Paper Series (TWERPS) 555, University of Warwick, Department of Economics. [Downloadable!]
  3. Murat Arik, 2007. "The Role of Career Colleges in Tennessee: Their Size, Contribution to Workforce Earnings, and Impact on Tennessee's Economy," Studies 200702, Middle Tennessee State University, Business and Economic Research Center. [Downloadable!]
  4. Carolina Castagnetti & Francesco Chelli & Luisa Rosti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, Economics Bulletin, vol. 9(4), pages 1-7. [Downloadable!]
  5. Egon Franck & Christian Opitz, 2004. "The singularity of the German doctorate as a signal for talent: Causes, consequences and future developments," Working Papers 0028, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
  6. Chevalier, Arnaud & Harmon, Colm & Walker, Ian & Zhu, Yu, 2003. "Does Education Raise Productivity or Just Reflect It?," CEPR Discussion Papers 3993, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Javier Nuñez & Andres Otero, 2005. "The choice of majors as a signaling device," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 20(1), pages 23-43, June. [Downloadable!]
  8. Daniel P. McMillen & Paul T. Seaman & Larry D. Singell, 2003. "A Mismatch Made in Heaven: A Hedonic Analysis of Overeducation and Undereducation," University of Oregon Economics Department Working Papers 2004-1, University of Oregon Economics Department, revised 01 Dec 2003. [Downloadable!]
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  9. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen. [Downloadable!]
  10. Philip A. Trostel, 2005. "Nonlinearity in the return to education," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 191-202, May. [Downloadable!]
  11. Bas Jacobs, . "An investigation of education finance reform: Graduate taxes and income contingent loans in the Netherlands," CPB Discussion Papers 9, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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