Earnings, Schooling and Economic Reform: Econometric Evidence from Hungary (1986-2004)
AbstractHow does the relationship between earnings and schooling change with the introduction of comprehensive economic reform? This paper sheds light on this question using a unique data set and procedure to reduce sample selection bias. Our evidence is from consistently coded, non-retrospective data for about 4 million Hungarian wage earners. We find that returns to skill increased by 75 percent from 1986 to 2004 (that is, during the period stretching from communism to full membership in the European Union). Moreover, our results identify winners and losers from reform. Winners were the college and university educated and those employed in the services sector (which excludes those in public services). Our results show that reform losers were those in construction and agriculture, those who attained only primary or vocational education (who actually experience a decrease in the returns to their education) as well as those younger workers which acquired most of their education after the collapse of communism (that is, after the main reforms were in place).
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2678.
Length: 28 pages
Date of creation: Mar 2007
Date of revision:
Publication status: published in: World Bank Economic Review, 2007, 21 (3), 509-526
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Other versions of this item:
- Dean Jolliffe, 2007. "Earnings, Schooling, and Economic Reform: Econometric Evidence From Hungary (1986--2004)," World Bank Economic Review, World Bank Group, World Bank Group, vol. 21(3), pages 509-526, July.
- I20 - Health, Education, and Welfare - - Education - - - General
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- 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
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-31 (All new papers)
- NEP-EDU-2007-03-31 (Education)
- NEP-HRM-2007-03-31 (Human Capital & Human Resource Management)
- NEP-LAB-2007-03-31 (Labour Economics)
- NEP-TRA-2007-03-31 (Transition Economics)
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.:
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- Elizabeth Brainerd, 2010. "Human Development in Eastern Europe and the CIS Since 1990," Human Development Research Papers (2009 to present) HDRP-2010-16, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
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