Comparative analysis of the returns to education in Germany and Hungary (2000)
AbstractIn this study standard Mincer earnings equations are estimated using both ordinary least squares (OLS) and quantile regression in order to give a comprehensive picture of the returns to education in Germany and Hungary for the year 2000. To make the cross-country comparison of the returns to education informative, six differentiated categories for formal education, rather than years of schooling, are generated and used in the empirical analysis. Moreover, the returns to three and eight field of study groups for Germany and Hungary respectively are estimated in order to shed more light on the valuation of specific university degree. Most importantly, the empirical results provide evidence for the fact that the OLS estimate is not an accurate estimate of the return to education for the population (more specifically for the selected samples). That is, the estimates of the quantile regressions point to the fact that differences in returns to education within educational groups contribute significantly to aggregate earnings inequality, especially in Hungary.
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Bibliographic InfoPaper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series Budapest Working Papers on the Labour Market with number 0507.
Length: 54 pages
Date of creation: Nov 2005
Date of revision:
Quantile regression; education systems; return to education; between-educational-levels earnings inequality; within-educational-levels earnings inequality;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- 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
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