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Credential Changes and Education Earnings Premia in Australia

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  • Michael Coelli

    (Department of Economics, The University of Melbourne)

  • Roger Wilkins

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

We find that post-school education earnings premia have remained strikingly stable over the 1981 to 2003-04 period in Australia. This stability is in sharp contrast to the rising college premium observed in the US. The observed stability in Australia may in part be due to changes in the credentials earned by individuals entering certain professional occupations during the 1980s and early 1990s, particularly for females. We provide an estimate of the potential effect of within-occupation credential changes on estimates of education earnings premia in Australia over time. Our focus is on credential changes within the nursing and teaching professions, which have moved from predominately certificate and diploma qualifications to university bachelor's degree or higher as the standard qualification.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2008n11.

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Length: 42 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:iae:iaewps:wp2008n11

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  1. Borland, J., 1995. "Education and the Structure of Earnings in Australia," Department of Economics - Working Papers Series 494, The University of Melbourne.
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