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Rates of Return to Degrees across British Regions

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Author Info
Nigel C. O'Leary () (WELMERC, University of Wales Swansea)
Peter J. Sloane (WELMERC, University of Wales Swansea and IZA Bonn)

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Abstract

Earlier papers have found considerable heterogeneity in the returns to degrees in relation to subjects of study, degree classification and higher education institution. In this paper we examine heterogeneity of returns across British regions using the Labour Force Survey. We find substantial variations in the financial rewards available to graduates across regions with much higher returns in London and the South East than elsewhere, although adjusting for regional differences in the cost-of-living narrows such differences considerably. Decompositional analysis, after controlling for regional differences in both occupational and industrial structures, suggests that coefficient effects dominate composition effects, consistent with agglomeration effects being important. These results have implications for the recent changes to student funding in England, Scotland and Wales.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1947.

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Length: 29 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:iza:izadps:dp1947

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Related research
Keywords: education degree rates of return regions

Other versions of this item:

Find related papers by JEL classification:
A22 - General Economics and Teaching - - Economics Education and Teaching of Economics - - - Undergraduate
A23 - General Economics and Teaching - - Economics Education and Teaching of Economics - - - Graduate
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
R1 - Urban, Rural, and Regional Economics - - General Regional Economics

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  2. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February. [Downloadable!] (restricted)
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  3. Sloane, Peter J. & O'Leary, Nigel C., 2004. "The Return to a University Education in Great Britain," IZA Discussion Papers 1199, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Blackaby, D H & Manning, D N, 1990. "The North-South Divide: Questions of Existence and Stability?," Economic Journal, Royal Economic Society, vol. 100(401), pages 510-27, June. [Downloadable!] (restricted)
  5. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February. [Downloadable!] (restricted)
  6. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February. [Downloadable!] (restricted)
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  7. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June. [Downloadable!] (restricted)
  8. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen. [Downloadable!]
  9. Robert E. Lucas, Jr., 1989. "On the Mechanics of Economic Development," NBER Reprints 1176, National Bureau of Economic Research, Inc.
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