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Education and Earnings Growth: Evidence from 11 European Countries

Author

Listed:
  • Brunello, Giorgio

    (University of Padova)

  • Comi, Simona Lorena

    (University of Milan Bicocca)

Abstract

We use cohort data from 11 European countries to study whether experience profiles differ by educational attainment. Previous literature does not provide a clear answer to this question, that is important to evaluate private returns to education over the working life of individuals. We find evidence that employees with tertiary education have steeper experience profiles than employees with upper secondary or compulsory education. Hence, education provides not only an initial labor market advantage but also a permanent advantage that increases with time in the labor market. We also find that differences in earnings growth by education are lower in countries with a higher level of corporatism and higher in countries which have experienced both relatively fast labor productivity growth and a relatively low educational attainment. The educational system also seems to matter, because countries with a more stratified system of secondary education have smaller differences in earnings growth by education.

Suggested Citation

  • Brunello, Giorgio & Comi, Simona Lorena, 2000. "Education and Earnings Growth: Evidence from 11 European Countries," IZA Discussion Papers 140, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp140
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    References listed on IDEAS

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    More about this item

    Keywords

    Education; earnings growth; Europe;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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