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Private returns to human capital over transition: A case study of Belarus

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Listed author(s):
  • Pastore, Francesco
  • Verashchagina, Alina

Abstract

The gradualist approach to economic transition in Belarus would contribute to form the a priori expectation that the rate of return to education is low and the earnings profile by work experience flat, like they supposedly were under central-planning. However, the first available estimates of Mincerian earnings equations based on the Belarusian Household Survey on Incomes and Expenditure suggest that the skill payoff was high in 1996, at about 10.1% per year, and stable. The return to one year of work experience is also high at 5%. This result maintains also after controlling for sample selection bias, despite a general reduction in the annual rate of return to education by about 20-30%. Though, it is ambiguous whether the high-skill payoff is the consequence of market forces coming into play or of policy decisions, considering the pervasive role of the state in the process of wage determination.

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Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 25 (2006)
Issue (Month): 1 (February)
Pages: 91-107

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Handle: RePEc:eee:ecoedu:v:25:y:2006:i:1:p:91-107
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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Find related papers by JEL classification:
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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  1. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
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  11. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, November.
  12. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
  13. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
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Cited by:

  1. Maksim Yemelyanau, 2009. "Inequality in Belarus from 1995 to 2007," BEROC Working Paper Series 01, Belarusian Economic Research and Outreach Center (BEROC).
  2. Tjaša Bartolj & Aleš AhCan & Aljoša Feldin & Sašo Polanec, 2013. "Evolution of private returns to tertiary education during transition: evidence from Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 25(3), pages 407-424, September.
  3. repec:spr:jlabre:v:38:y:2017:i:2:d:10.1007_s12122-017-9242-y is not listed on IDEAS
  4. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
  5. El-hadj Bah & Josef C. Brada, 2014. "Labor Markets in the Transition Economies: An Overview," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 3-53, June.
  6. CHEN, Guifu & HAMORI, Shigeyuki, 2009. "Economic returns to schooling in urban China: OLS and the instrumental variables approach," China Economic Review, Elsevier, vol. 20(2), pages 143-152, June.
  7. Raslavičius, Laurencas, 2012. "Renewable energy sector in Belarus: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5399-5413.
  8. Amarjargal DAIRII & Terukazu SURUGA, 2006. "Economic Returns to Schooling in Transition: A Case of Mongolia," GSICS Working Paper Series 9, Graduate School of International Cooperation Studies, Kobe University.
  9. Danilovich, Hanna & Croucher, Richard, 2015. "Investment in personnel and FDI in Belarusian companies," International Business Review, Elsevier, vol. 24(6), pages 966-971.
  10. Strawinski, Pawel, 2008. "External Return to Education in Poland," MPRA Paper 11598, University Library of Munich, Germany.
  11. Pastore Francesco & Verashchagina Alina, 2007. "The gender wage gap in the Republic of Belarus," EERC Working Paper Series 04-133e, EERC Research Network, Russia and CIS.
  12. Strawinski, Pawel, 2007. "Changes In Return To Higher Education In Poland 1998-2004," MPRA Paper 5185, University Library of Munich, Germany.
  13. Searing, Elizabeth A.M. & Rios-Avila, Fernando & Lecy, Jesse D., 2013. "The impact of psychological trauma on wages in post-conflict Bosnia and Herzegovina," Social Science & Medicine, Elsevier, vol. 96(C), pages 165-173.
  14. Alexander Chubrik & Alaksei Kazlou, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Belarus," CASE Network Studies and Analyses 0462, CASE-Center for Social and Economic Research.
  15. Tamar Khitarishvili, 2010. "Assessing the Returns to Education in Georgia," Economics Working Paper Archive wp_608, Levy Economics Institute.
  16. Tom Coupe & Hanna Vakhitova, 2011. "Recent Dynamics of Returns to Education in Transition Countries," Discussion Papers 39, Kyiv School of Economics.
  17. Phanhpakit ONPHANHDALA & Terukazu SURUGA, 2007. "Education and Earnings in Lao PDR: Further Results," GSICS Working Paper Series 16, Graduate School of International Cooperation Studies, Kobe University.
  18. Arabsheibani, Reza & Mussurov, Altay, 2006. "Returns to Schooling in Kazakhstan: OLS and Instrumental Variables Approach," IZA Discussion Papers 2462, Institute for the Study of Labor (IZA).
  19. Strawinski, Pawel, 2008. "Changes in return to higher education in Poland 1998-2005," MPRA Paper 9533, University Library of Munich, Germany.

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