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Earnings returns to the British education expansion

  • Devereux, Paul J.
  • Fan, Wen

We study the effects of the large expansion in British educational attainment that took place for cohorts born between 1970 and 1975. Using the Quarterly Labour Force Survey, we find that the expansion caused men to increase education by about a year on average and gain about 8% higher wages; women obtained a slightly greater increase in education and a similar increase in wages. Clearly, there was a sizeable gain from being born late enough to take advantage of the greater educational opportunities offered by the expansion. Treating the expansion as an exogenous increase in educational attainment, we obtain instrumental variables estimates of returns to schooling of about 6% for both men and women.

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

Volume (Year): 30 (2011)
Issue (Month): 6 ()
Pages: 1153-1166

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Handle: RePEc:eee:ecoedu:v:30:y:2011:i:6:p:1153-1166
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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  1. Samuel Berlinski & Sebastian Galiani, 2004. "The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment," IFS Working Papers W04/30, Institute for Fiscal Studies.
  2. Daniel A. Ackerberg & Paul J. Devereux, 2008. "Improved Jive Estimators for Overidentified Linear Models with and without Heteroskedasticity," Working Papers 200817, School Of Economics, University College Dublin.
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