Advanced Search
MyIDEAS: Login to save this paper or follow this series

Does better education cause higher income?

Contents:

Author Info

  • Homann, Malte
  • Jensen, Uwe
Registered author(s):

    Abstract

    While the positive influence of higher education on income has been repeatedly confirmed, the linking channel can be ambiguous. Within the framework of estimating the effect of income on life satisfaction, various sources of endogeneity caused by joint determination are addressed and the earnings equation is reconsidered, too: We cast doubt on the hypothesis of the direct influence of educational achievement on income, using two separate cross-section datasets for full-time employed, male white- or blue-collar workers from German SOEP data. Our data rather suggest that the socio-economic rank of an occupation serves as a factor which links educational achievement and income. One explanation relates to the signaling theory by Spence, another possible explanation is yielded by the existence of a regime of regulations in Germany that require certain formal quali cations to obtain highly-prestigious jobs which are, in general, also better paid. --

    Download Info

    If 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.
    File URL: http://econstor.eu/bitstream/10419/88917/1/775231231.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 145.

    as in new window
    Length:
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:zbw:hwwirp:145

    Contact details of provider:
    Postal: Heimhuder Str. 71, D-20148 Hamburg
    Phone: +49 (0)40 34 05 76 - 0
    Fax: +49 (0)40 34 05 76 - 776
    Email:
    Web page: http://www.hwwi.org/en/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Knabe, Andreas & Rätzel, Steffen, 2010. "Income, happiness, and the disutility of labour," Economics Letters, Elsevier, vol. 107(1), pages 77-79, April.
    2. Blanchflower, David G. & Oswald, Andrew J., 2007. "Is Well-Being U-Shaped over the Life Cycle?," IZA Discussion Papers 3075, Institute for the Study of Labor (IZA).
    3. Chadi, Adrian, 2011. "Employed but still unhappy? On the relevance of the social work norm," CAWM Discussion Papers 42, Center of Applied Economic Research Münster (CAWM), University of Münster.
    4. Ross, Stephen L. & Zenou, Yves, 2007. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages Based on Urban Economic Theory," IZA Discussion Papers 2601, Institute for the Study of Labor (IZA).
    5. Erzo F.P. Luttmer, 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," NBER Working Papers 10667, National Bureau of Economic Research, Inc.
    6. Bruno Frey & Simon Luechinger & Alois Stutzer, 2009. "The life satisfaction approach to valuing public goods: The case of terrorism," Public Choice, Springer, vol. 138(3), pages 317-345, March.
    7. Vatter, Johannes, 2012. "Well-being in Germany: What explains the regional variation?," FZG Discussion Papers 50, Research Center for Generational Contracts (FZG), University of Freiburg.
    8. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
    9. David Neumark & Sanders D. Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series 29, Board of Governors of the Federal Reserve System (U.S.).
    10. Steffen Rätzel, 2012. "Labour Supply, Life Satisfaction, and the (Dis)Utility of Work," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1160-1181, December.
    11. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    12. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    13. Uhlig, Johannes & Solga, Heike & Schupp, Jürgen, 2009. "Bildungsungleichheiten und blockierte Lernpotenziale: welche Bedeutung hat die Persönlichkeitsstruktur für diesen Zusammenhang?," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 418-440.
    14. Nattavudh Powdthavee, 2010. "How much does money really matter? Estimating the causal effects of income on happiness," Empirical Economics, Springer, vol. 39(1), pages 77-92, August.
    15. Wichert, Laura & Pohlmeier, Winfried, 2010. "Female labor force participation and the big five," ZEW Discussion Papers 10-003, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    16. Johannes Vatter, 2012. "Well-Being in Germany: What Explains the Regional Variation?," SOEPpapers on Multidisciplinary Panel Data Research 435, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Pouwels, Babette & Siegers, Jacques & Vlasblom, Jan Dirk, 2008. "Income, working hours, and happiness," Economics Letters, Elsevier, vol. 99(1), pages 72-74, April.
    18. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
    19. Gimenez-Nadal, Jose Ignacio & Molina, José Alberto, 2011. "Commuting Time and Labour Supply: A Causal Effect?," IZA Discussion Papers 5529, Institute for the Study of Labor (IZA).
    20. Christina Boll, 2010. "Lohneinbußen von Frauen durch geburtsbedingte Erwerbsunterbrechungen," Wirtschaftsdienst, Springer, vol. 90(10), pages 700-702, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:zbw:hwwirp:145. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.