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How much does education matter and why?

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Author Info

  • Velden,Rolf,van der
  • Wolbers,Maarten

    (ROA rm)

Abstract

This article explores the total (measured and unmeasured) effect of education on different socio-economic outcomes. The analysis shows that the usual regression models typically underestimate the effects of education. The effects of education are decomposed into three sources of variation: courses of study, schools and student composition. Schools do not seem to have a large impact. A significant part of the effect of education stems from differential selection of students into courses of study. However, there is a notable difference between social and economic rewards. Apart from level of education, selectivity and specificity of the course of study turn out to affect the labor market outcomes

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Bibliographic Info

Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 003.

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Date of creation: 2004
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Handle: RePEc:dgr:umaror:2004003

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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

Related research

Keywords: labour market entry and occupational careers;

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References

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  1. Velden, R.K.W. van der & Smoorenburg, M.S.M. van, 1999. "Overscholing en beloning. Het effect van verschillende meetmethoden," Open Access publications from Maastricht University urn:nbn:nl:ui:27-17086, Maastricht University.
  2. Muller, Walter & Gangl, Markus (ed.), 2003. "Transitions from Education to Work in Europe: The Integration of Youth into EU Labour Markets," OUP Catalogue, Oxford University Press, number 9780199252473, September.
  3. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
  4. Bishop, John, 1989. "Occupational training in high school: When does it pay off?," Economics of Education Review, Elsevier, vol. 8(1), pages 1-15, February.
  5. Bosker, Roel J. & Velden, Rolf van der & Loo, Peet van de, 2001. "Assessing institutional effects of colleges: the labour market success of their graduates," Open Access publications from Maastricht University urn:nbn:nl:ui:27-20813, Maastricht University.
  6. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
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Cited by:
  1. Tacsir, Ezequiel, 2010. "Occupation Choice: Family, Social and Market Influences," UNU-MERIT Working Paper Series 013, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  2. Radim Ryška & Martin Zelenka, 2011. "Changes in Transition of Czech HE Graduates in the Context of Economic Crisis," Working Papers 07, AlmaLaurea Inter-University Consortium.
  3. Aleksander Kucel & Montserrat Vilalta-Bufi, 2012. "Why do university graduates regret their study program? A comparison between Spain and the Netherlands," Working Papers in Economics 279, Universitat de Barcelona. Espai de Recerca en Economia.

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