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).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
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, 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.:
- Dean Jolliffe & Nauro F. Campos, 2004.
"Does Market Liberalisation Reduce Gender Discrimination? Econometric Evidence from Hungary, 1986—1998,"
William Davidson Institute Working Papers Series
2004-678, William Davidson Institute at the University of Michigan.
- Jolliffe, Dean & Campos, Nauro F., 2005. "Does market liberalisation reduce gender discrimination? Econometric evidence from Hungary, 1986-1998," Labour Economics, Elsevier, vol. 12(1), pages 1-22, February.
- Jennifer Hunt, 1997.
"The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?,"
NBER Working Papers
6167, National Bureau of Economic Research, Inc.
- Jennifer Hunt, 2002. "The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 148-169, January.
- Hunt, Jennifer, 1998. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," CEPR Discussion Papers 1805, C.E.P.R. Discussion Papers.
- Jennifer Hunt, 1997. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," Discussion Papers of DIW Berlin 156, DIW Berlin, German Institute for Economic Research.
- Campos, Nauro F & Horváth, Roman, 2006.
"Reform Redux: Measurement, Determinants and Reversals,"
IZA Discussion Papers
2093, Institute for the Study of Labor (IZA).
- Nauro F. Campos & Roman Horváth, 2006. "Reform Redux: Measurement, Determinants and Reversals," Working Papers IES 2006/16, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2006.
- Nauro F. Campos & Roman Horvath, 2009. "Reform Redux: Measurement, Determinants and Reversals," Working Papers 2009/6, Czech National Bank, Research Department.
- Campos, Nauro F & Horváth, Roman, 2006. "Reform Redux: Measurement, Determinants and Reversals," CEPR Discussion Papers 5673, C.E.P.R. Discussion Papers.
- 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).
- Brunello, Giorgio & Crivellaro, Elena & Rocco, Lorenzo, 2010.
"Lost in Transition? The Returns to Education Acquired under Communism 15 Years after the Fall of the Berlin Wall,"
IZA Discussion Papers
5409, Institute for the Study of Labor (IZA).
- Lorenzo Rocco & Giorgio Brunello & Elena Crivellaro, 2011. "Lost in Transition? The returns to education acquired under communism 15 years after the fall of the Berlin Wall," Working Papers 17, AlmaLaurea Inter-University Consortium.
- Brainerd, Elizabeth, 2010. "The Demographic Transformation of Post-Socialist Countries," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.