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Education, Gender and Earnings in France and Germany : Level and Dispersion Effects

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Author Info
Lauer, Charlotte
Abstract

This paper analyses the relationship between education, gender and earnings in France and Germany. The model chosen here enables to estimate the impact of education not only on the expected earnings level but also on their dispersion, taking gender-specific sample selectivity into account. The results indicate that the completion of a minimum level of general instruction yields an earnings premium that cannot compensated by a vocational degree. Moreover, education affects the uncertainty of earnings. General qualifications are found to increase the earnings risk, vocational one to reduce it. More education, especially tertiary education, yields a high earnings premium but is associated with the highest earnings uncertainty. Women enjoy a higher earnings premium for education than men and though they face overall a higher earnings uncertainty, they can - more than men - reduce this risk by investing in their education.

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File URL: http://hdl.handle.net/10419/24063
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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 04-54.

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Date of creation: 2004
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Handle: RePEc:zbw:zewdip:2192

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Related research
Keywords: education; earnings; heteroscedasticity;

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Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
I2 - Health, Education, and Welfare - - Education

References listed on IDEAS
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  1. William W. Gould & Jeffrey Pitblado & William Sribney, 2006. "Maximum Likelihood Estimation with Stata," Stata Press books, StataCorp LP, edition 3, number ml3, November-. [Downloadable!]
  2. Pereira, Pedro Telhado & Martins, Pedro Silva, 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," IZA Discussion Papers 120, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2003. "Fifty Years of Mincer Earnings Regressions," IZA Discussion Papers 775, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Ch. LAUER & A.M. WEBER, 2003. "Employment of Mothers after Childbirth : A French-German Comparison," Working Papers ERMES 0309, ERMES, University Paris 2. [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-12.

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