Declining Returns to Education in NOrway? Comparing Estimates Across Cohorts, Sectors and Over Time

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Declining Returns to Education in NOrway? Comparing Estimates Across Cohorts, Sectors and Over Time

Author Info

Haegeland, T.
Klette, T.J.
Salvanes, K.G.

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Abstract

We examine the role of the Norwegian education system in explaining the moderate and stable earnings dispersion in Norway. Estimating earnings equations for 1980 and 1990, we find that returns to education have been remarkably stable in Norway, also when we compare returns to education across different sectors of the economy. Our analysis controls for self-selection into education by using an instrumental variable technique. We estimate separate education earnings profiles for different cohorts to identify the effect on wage premiums of the large changes that have taken place in the Norwegian education system. The substantially higher level of educational attainment for more recent cohorts does not, cet.par., seem to have negative effect on educational wage premiums for these younger cohorts.

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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 14/99.

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Length: 17 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:norgee:14/99

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Article
- Haegeland, Torbjorn & Klette, Tor Jakob & Salvanes, Kjell G, 1999. " Declining Returns to Education in Norway? Comparing Estimates across Cohorts, Sectors and Over Time," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(4), pages 555-76, December. [Downloadable!] (restricted)

Find related papers by JEL classification:
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
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

Cited by:
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Aakvik, Arild & Salvanes, Kjell G & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," CEPR Discussion Papers 4088, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute for the Study of Labor (IZA). [Downloadable!]
Kjell G. Salvanes and Svein Erik Førre, 2001. "Job Creation, Heterogeneous Workers and Technical Change: Matched Worker/Plant Data Evidence from Norway," Discussion Papers 304, Research Department of Statistics Norway. [Downloadable!]
Kjersti-Gro Lindquist and Terje Skjerpen, . "Explaining the change in skill structure of labour demand in Norwegian manufacturing," Discussion Papers 293, Research Department of Statistics Norway. [Downloadable!]
Ariel Kalil, Magne Mogstad, Mari Rege, Mark Votruba, 2009. "Divorced Fathers’ Proximity and Children’s Long Run Outcomes. Evidence from Norwegian Registry Data," Discussion Papers 589, Research Department of Statistics Norway. [Downloadable!]
Øivind A. Nilsen, Arvid Raknerud, Marina Rybalka and Terje Skjerpen, 2008. "Skill Composition: Exploring a Wage-based Skill Measure," Discussion Papers 531, Research Department of Statistics Norway. [Downloadable!]
Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Neighbourhood Is Not What It Used to Be," IZA Discussion Papers 952, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Oddbjørn Raaum & Kjell G. Salvanes & Erik O. Sørensen, 2006. "The Neighbourhood is Not What it Used to be," Economic Journal, Royal Economic Society, vol. 116(508), pages 200-222, 01. [Downloadable!] (restricted)
B. Müge Tunaer & Yaprak Gülcan, 2006. "Measuring Returns to Education in Turkey," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Human and Economic Resources, pages 66-71 Izmir University of Economics. [Downloadable!]
Kalil, Ariel & Mogstad, Magne & Rege, Mari & Votruba, Mark, 2009. "Divorced fathers’ proximity and children’s long run outcomes: Evidence from Norwegian registry data," UiS Working Papers in Economics and Finance 2009/29, University of Stavanger. [Downloadable!]
Bratsberg,Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Jäntti, Markus & Eriksson, Tor & Österbacka, Eva, 2007. "Nonlinearities in Intergenerational Earnings Mobility : Consequences for Cross-Country Comparisons," The Warwick Economics Research Paper Series (TWERPS) 782, University of Warwick, Department of Economics. [Downloadable!]
Other versions:
- Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Markus Ja¨ntti & Tor Eriksson & Eva O¨sterbacka, 2007. "Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons," Economic Journal, Royal Economic Society, vol. 117(519), pages C72-C92, 03. [Downloadable!] (restricted)
Raaum,O. & Aabo,T.E., 1999. "The effect of schooling on earnings : the role of family background studied by a large sample of Norwegian twins," Memorandum 16/1999, Oslo University, Department of Economics. [Downloadable!]
Raaum,O. & Salvanes,K.G. & Sorensen,E.O., 2001. "The neighbourhood is not what it used to be : has there been equalisation of opportunity across families and communities in Norway," Memorandum 36/2001, Oslo University, Department of Economics. [Downloadable!]
Longva,P. & Raaum,O., 2000. "Earnings assimilation of immigrants in Norway : a reappraisal," Memorandum 05/2000, Oslo University, Department of Economics. [Downloadable!]
John K. Dagsvik, Torbjørn Hægeland and Arvid Raknerud, 2008. "Estimating the Returns to Schooling: A Likelihood Approach Based on Normal Mixtures," Discussion Papers 567, Research Department of Statistics Norway. [Downloadable!]
Annette Alstadsaeter, 2001. "Does the Tax System Encourage too much Education?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
Other versions:
- Alstadsaeter, A., 2000. "Does the Tax System Encourage Too Much Education?," Papers 7/00, Norwegian School of Economics and Business Administration-.
- Annette Alstadsæter, 2002. "Does the Tax System Encourage too Much Education?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(1), pages 27-, February.

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