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Evolution of private returns to schooling over the business cycle in a transition economy

Author

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  • Leszek Wincenciak

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

The purpose of this study is twofold. First, it aims to provide the estimates of returns to schooling using consistent methodology and comparable set of data for a relatively long time horizon for a country undergoing economic transition and accession process into European Union, 1995-2017. Secondly, using the Mincer (1974) methodology of wage regressions it aims to verify if returns to schooling are pro-cyclical or counter-cyclical. Returns to schooling are linked to the evolution of unemployment rate on a regional level. Estimated earnings functions suggest that returns to schooling were increasing in Poland until 2006 and declining afterwards unveiling the supply side effects domination. The estimates show that an increase in unemployment rate by 1 percent leads to an increase of return to additional year of schooling roughly by 0.008 percentage points.

Suggested Citation

  • Leszek Wincenciak, 2019. "Evolution of private returns to schooling over the business cycle in a transition economy," Working Papers 2019-19, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2019-19
    as

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    File URL: https://www.wne.uw.edu.pl/index.php/download_file/5152/
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    References listed on IDEAS

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    More about this item

    Keywords

    returns to schooling; education; earnings equation; wage curve; business cycle; transition;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • 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

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