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Lost in Transition? The Returns to Education Acquired under Communism 15 Years after the Fall of the Berlin Wall

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Author Info

  • Brunello, Giorgio

    ()
    (University of Padova)

  • Crivellaro, Elena

    ()
    (OECD)

  • Rocco, Lorenzo

    ()
    (University of Padova)

Abstract

Using data for 22 economies in Eastern and Western Europe, we find evidence that having studied under communism is relatively penalized in the economies of the late 2000s. This evidence, however, is limited to males and to primary and secondary education, and holds for eight CEE economies but not for the East Germans who have studied in the former German Democratic Republic. We also find that post-secondary education acquired under communism yields higher, not lower, payoffs than similar education in Western Europe.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5409.

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Length: 46 pages
Date of creation: Dec 2010
Date of revision:
Publication status: published as 'Lost in Transition? The returns to education acquired under communism in the first decade of the new millennium' in: Economics of Transition, 2012, 20 (4), 637-676
Handle: RePEc:iza:izadps:dp5409

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Keywords: returns to education; Eastern Europe;

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References

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  1. Card, David & Rothstein, Jesse, 2007. "Racial segregation and the black-white test score gap," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2158-2184, December.
  2. Hanushek, Eric A. & Woessmann, Ludger, 2009. "Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation," IZA Discussion Papers 4575, Institute for the Study of Labor (IZA).
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  4. Fleisher, Belton M. & Peter, Klara Sabirianova & Wang, Xiaojun, 2004. "Returns to Skills and the Speed of Reforms: Evidence from Central and Eastern Europe, China, and Russia," IZA Discussion Papers 1182, Institute for the Study of Labor (IZA).
  5. Flanagan, Robert J., 1998. "Were communists good human capitalists? The case of the Czech Republic," Labour Economics, Elsevier, vol. 5(3), pages 295-312, September.
  6. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, Elsevier.
  7. Campos, Nauro F & Jolliffe, Dean, 2007. "Earnings, Schooling and Economic Reform: Econometric Evidence from Hungary (1986-2004)," IZA Discussion Papers 2678, Institute for the Study of Labor (IZA).
  8. Flabbi, Luca & Paternostro, Stefano & Tiongson, Erwin R., 2007. "Returns to education in the economic transition : a systematic assessment using comparable data," Policy Research Working Paper Series 4225, The World Bank.
  9. Jurajda, Stepan, 2003. "Gender wage gap and segregation in enterprises and the public sector in late transition countries," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 199-222, June.
  10. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
  11. Francis Green & Yu Zhu, 2010. "Overqualification, job dissatisfaction, and increasing dispersion in the returns to graduate education," Oxford Economic Papers, Oxford University Press, vol. 62(4), pages 740-763, October.
  12. Michael Gebel & Friedhelm Pfeiffer, 2007. "Educational Expansion and Its Heterogeneous Returns for Wage Workers," SOEPpapers on Multidisciplinary Panel Data Research 13, DIW Berlin, The German Socio-Economic Panel (SOEP).
  13. Orazem, Peter F. & Vodopivec, Milan, 1997. "Value of human capital in transition to market: Evidence from Slovenia," European Economic Review, Elsevier, vol. 41(3-5), pages 893-903, April.
  14. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
  15. Lamo, Ana & Messina, Julián & Wasmer, Etienne, 2010. "Are Specific Skills an Obstacle to Labor Market Adjustment?," IZA Discussion Papers 5250, Institute for the Study of Labor (IZA).
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Cited by:
  1. Elsner, Benjamin, 2011. "Emigration and Wages: The EU Enlargement Experiment," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48716, Verein für Socialpolitik / German Economic Association.
  2. Fuchs-Schündeln, Nicola & Masella, Paolo, 2013. "Long-Lasting Effects of Socialist Education," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79865, Verein für Socialpolitik / German Economic Association.

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