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Is the Marginal Effect of Education on Income Diminishing?


  • Tal Shahor

    (The Academic College of Emek Yezreel, Israel)


This study seeks to determine the effect of education on income for wage workers in Israel, for the years 2005 – 2015. The hypothesis of this study is that the marginal effect of the number of years of education on income will be declining, such that at a certain point, it will be zero or even negative. The results of the study show that until 2012, the marginal effect of the number of years of education on income is linear. However, beginning in 2013, the marginal effect of the number of years of education on income is declining.

Suggested Citation

  • Tal Shahor, 2018. "Is the Marginal Effect of Education on Income Diminishing?," European Journal of Economics and Business Studies Articles, European Center for Science Education and Research, vol. 4, EJES May-.
  • Handle: RePEc:eur:ejesjr:251
    DOI: 10.2478/ejes-2018-0037

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    References listed on IDEAS

    1. Hanushek, Eric A. & Woessmann, Ludger, 2007. "The role of education quality for economic growth," Policy Research Working Paper Series 4122, The World Bank.
    2. Neuman, Shoshana & Ziderman, Adrian, 2003. "Can vocational education improve the wages of minorities and disadvantaged groups?: The case of Israel," Economics of Education Review, Elsevier, vol. 22(4), pages 421-432, August.
    3. Ludger Vessman & Jerik Hanushek, 2007. "The role of education quality in economic growth (Part I)," Educational Studies, Higher School of Economics, issue 2, pages 86-116.
    4. Loo Jasper B. van & Toolsema Bert, 2004. "The Empirical Determination of Key Skills from an Economic Perspective," ROA Research Memorandum 004, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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    Education; Income; Wage; Israel; Age.;


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