On The Rewards To Education In Spain: Endogeneity And Regional Differences
This paper presents empirical evidence on the returns to education in Spain using the Survey on the Quality of Life in the Workplace. Five waves of the survey have been pooled to build a dataset for which Mincer-type earning functions are estimated. Unlike other analyses experience is computed as actual and not potential experience, and a variable capturing periods of unemployment is also included to better approach the underlying concept, this being specially relevant given high unemployment rates in Spain and average length of these periods among certain groups. We calculate the returns to education for male workers following the simplest Mincer’s specification estimated by (a) OLS and (b) instrumental variables (IV) techniques as a means to deal with endogeneity concerns regarding schooling and find that returns to education for male salaried workers are 5.68 (OLS) and 7.37 (IV with a family background instrument) giving evidence of a slightly declining trend in the rate of return to education in Spain. The consideration of schooling attainment as qualifications allow relaxing Mincer’s underlying hypothesis of linearity of the returns to education in schooling. Evidence against this assumption is displayed. We also test the parallelism of log-earnings experience profiles across schooling levels. The empirical analysis is finally extended by focusing on regional differences.
Volume (Year): 10 (2010)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.usc.es/economet/eaa.htm|
|Order Information:|| Web: http://www.usc.es/economet/info.htm Email: |
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.:
- Hipólito J. Simón & Raúl Ramos & Esteve Sanromà, 2005.
"Collective bargaining and regional wage differences in Spain: An empirical analysis,"
2005/7, Institut d'Economia de Barcelona (IEB).
- Hipolito Simon & Raul Ramos & Esteban Sanroma, 2006. "Collective bargaining and regional wage differences in Spain: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1749-1760.
- David Card, 2000.
"Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems,"
NBER Working Papers
7769, National Bureau of Economic Research, Inc.
- Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
- Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, 04.
- Psacharopoulos, George, 1994.
"Returns to investment in education: A global update,"
Elsevier, vol. 22(9), pages 1325-1343, September.
- Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Maria Arrazola & Jose de Hevia, 2006. "Gender Differentials in Returns to Education in Spain," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 469-486.
- James J. Heckman & Xuesong Li, 2003. "Selection Bias, Comparative Advantage and Heterogeneous Returns to Education," NBER Working Papers 9877, National Bureau of Economic Research, Inc.
- M. Arrazola & J. De Hevia & M. Risueno & J. F. Sanz, 2003. "Returns to education in Spain: Some evidence on the endogeneity of schooling," Education Economics, Taylor & Francis Journals, vol. 11(3), pages 293-304.
When requesting a correction, please mention this item's handle: RePEc:eaa:eerese:v:10:y2010:i:3_3. 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: (M. Carmen Guisan)
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.