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Returning to returns: revisiting the British education evidence

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  • Dolton, Peter
  • Sandi, Matteo

Abstract

We revisit the question of what is the rate of return to education in Great Britain. We make two contributions. Firstly, we re-assess the robustness of Harmon and Walker (1995), Oreopoulos (2006) and Devereux and Hart (2010) to equation specification and estimation method. Secondly, we generalize the previous IV approaches by using the month of birth in the calculation of a more accurate IV exploiting the 1947, 1963 and 1972 UK School Leaving Age reforms. Our results highlight the importance of equation specification and they provide a robust case for a 6% Rate of Return to Education for men

Suggested Citation

  • Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: revisiting the British education evidence," LSE Research Online Documents on Economics 85152, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:85152
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    File URL: http://eprints.lse.ac.uk/85152/
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    References listed on IDEAS

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    Cited by:

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    2. Cummins, Neil, 2022. "The Causal Effects of Education on Age at Marriage and Marital Fertility," CEPR Discussion Papers 17398, C.E.P.R. Discussion Papers.
    3. Cygan-Rehm, Kamila, 2018. "Is additional schooling worthless? Revising the zero returns to compulsory schooling in Germany," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181528, Verein für Socialpolitik / German Economic Association.
    4. Judith M. Delaney & Paul J. Devereux, 2019. "More Education, Less Volatility? The Effect of Education on Earnings Volatility over the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 37(1), pages 101-137.
    5. Lepinteur, Anthony & Nieto, Adrìan, 2021. "All about the money ? The gendered effect of education on industrial and occupational sorting," CEPREMAP Working Papers (Docweb) 2109, CEPREMAP.
    6. Sakai Yoko & Masuda Kazuya, 2020. "Secondary education and international labor mobility: evidence from the natural experiment in the Philippines," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-22, January.
    7. Buscha, Franz & Gorman, Emma & Sturgis, Patrick, 2023. "Selective schooling and social mobility in England," Labour Economics, Elsevier, vol. 81(C).
    8. Franziska Hampf, 2019. "The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany," ifo Working Paper Series 313, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    9. Clark, Gregory & Cummins, Neil, 2020. "Does education matter? Tests from extensions of compulsory schooling in England and Wales 1919-21, 1947 and 1972," LSE Research Online Documents on Economics 107910, London School of Economics and Political Science, LSE Library.
    10. Clark, Gregory & Cummins, Neil, 2020. "Does education matter? Tests from extensions of compulsory schooling in England and Wales 1919-21, 1947 and 1972," Economic History Working Papers 107910, London School of Economics and Political Science, Department of Economic History.
    11. Eréndira León Bravo, 2022. "Three essays on education, wages, and the labour market in Mexico," Economics PhD Theses 0322, Department of Economics, University of Sussex Business School.

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    JEL classification:

    • N0 - Economic History - - General
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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