Earnings, Schooling and Economic Reform: New Econometric Evidence

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Earnings, Schooling and Economic Reform: New Econometric Evidence

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Campos, Nauro F
Jolliffe, Dean

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Abstract

How does the relationship between earnings and schooling change with the introduction of comprehensive economic reform? This Paper uses a unique dataset (covering about 3 million Hungarian wage earners, from 1986 to 1998) and a novel procedure to correct sample selection bias (based on DiNardo, Fortin and Lemieux’s) to shed light on this question. We find that reform was successful in general, increasing returns to skill by 70.5%, but that there were winners and losers. The winners seem to be the college and university educated, those employed by the smaller firms and those in commerce and services. The losers are those in manufacturing and agriculture and, surprisingly, those who received their formal education after the initiation of reform.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4716.

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Date of creation: Oct 2004
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Handle: RePEc:cpr:ceprdp:4716

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-02-13 (All new papers)
NEP-EDU-2005-02-13 (Education)
NEP-LAB-2005-02-13 (Labour Economics)

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