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Returns to education and to experience within the EU: are there differences between wage earners and the self-employed?

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  • Inmaculada Garc�a Mainar

    (Department of Econ�mic Analysis. Facultad de Ciencias Econ�micas y Empresariales. University of Zaragoza.)

  • V�ctor M. Montuenga G�mez

    (Department of Business. University of La Rioja)

Abstract

This paper investigates the returns to education and to experience within the 15 pre-enlargement EU countries, distinguishing between wage earners and the self-employed. These returns are estimated by using a comparable data set coming from the European Community Household Panel during the period 1994-2000. To correct for the ability bias and recover the education coefficients, an Efficient Generalized Instrumental Variable technique is applied. Although the results differ across countries, two common features can be observed. First, the earnings-experience profiles indicate certain traits of competitiveness in the labor markets and, secondly, the returns to education show that signaling plays a relevant role in the earnings of workers.

Suggested Citation

  • Inmaculada Garc�a Mainar & V�ctor M. Montuenga G�mez, 2004. "Returns to education and to experience within the EU: are there differences between wage earners and the self-employed?," Documentos de Trabajo dt2004-08, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    • Handle: RePEc:zar:wpaper:dt2004-08
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    More about this item

    Keywords

    Returns to education; wage earners; self-employed; panel data; European Union;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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