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Returning to returns: Revisiting the British education evidence

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  • Dolton, Peter
  • Sandi, Matteo

Abstract

We revisit the question of what is the rate of return to education in Great Britain. We make two contributions. Firstly, we re-assess the robustness of Harmon and Walker (1995), Oreopoulos (2006) and Devereux and Hart (2010) to equation specification and estimation method. Secondly, we generalize the previous IV approaches by using the month of birth in the calculation of a more accurate IV exploiting the 1947, 1963 and 1972 UK School Leaving Age reforms. Our results highlight the importance of equation specification and they provide a robust case for a 6% Rate of Return to Education for men.

Suggested Citation

  • Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: Revisiting the British education evidence," Labour Economics, Elsevier, vol. 48(C), pages 87-104.
  • Handle: RePEc:eee:labeco:v:48:y:2017:i:c:p:87-104
    DOI: 10.1016/j.labeco.2017.07.001
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    References listed on IDEAS

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    Cited by:

    1. Kamila Cygan-Rehm, 2018. "Is Additional Schooling Worthless? Revising Zero Returns to Compulsory Schooling in Germany," CESifo Working Paper Series 7191, CESifo Group Munich.
    2. Judith M. Delaney & Paul J. Devereux, 2019. "More Education, Less Volatility? The Effect of Education on Earnings Volatility over the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 37(1), pages 101-137.
    3. John Cullinan & Kevin Denny & Darragh Flannery, 2018. "A Distributional Analysis of Upper Secondary School Performance," Working Papers 201808, Geary Institute, University College Dublin.
    4. John Cullinan & Kevin Denny & Darragh Flannery, 2018. "A Distributional Analysis of Upper Secondary School Performance," Working Papers 201806, School of Economics, University College Dublin.

    More about this item

    Keywords

    Returns to education; Schooling; Instrumental variables;

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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