IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v7y2001i4p479-50410.1007-bf02295776.html
   My bibliography  Save this article

Educational choice, wage determination, and rates of return to education in Taiwan

Author

Listed:
  • Yih-chyi Chuang
  • Chen-Yeng Chao

Abstract

This paper estimates educational choice, wage determination, and the rate of return to education in Taiwan using Taiwan's Manpower Utilization Survey data of 1996. As education investment is a self-selection process, this paper adopts a two-stage estimation method. First, a polychotomous ordered probit model is used to estimate the education decision. Second, the wage equations of different educational attainments are estimated by incorporating the possible selection bias obtained in the probit model. Finally, rates of return on each education level are calculated from the estimation results. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Yih-chyi Chuang & Chen-Yeng Chao, 2001. "Educational choice, wage determination, and rates of return to education in Taiwan," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 479-504, November.
  • Handle: RePEc:kap:iaecre:v:7:y:2001:i:4:p:479-504:10.1007/bf02295776
    DOI: 10.1007/BF02295776
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02295776
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arjun Bedi & Noel Gaston, 1997. "Returns to endogenous education: the case of Honduras," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 519-528.
    2. Altig, David & Davis, Steven J., 1993. "Borrowing constraints and two-sided altruism with an application to social security," Journal of Economic Dynamics and Control, Elsevier, vol. 17(3), pages 467-494, May.
    3. PHILIP Ganderton & PETER Griffin, 1993. "Impact Of Child Quality On Earnings: The Productivity-Of-Schooling Hypothesis," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 39-47, July.
    4. Cox, Donald & Jappelli, Tullio, 1993. "The Effect of Borrowing Constraints on Consumer Liabilities," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 197-213, May.
    5. Ryoo, Jai-Kyung & Nam, Young-Sook & Carnoy, Martin, 1993. "Changing rates of return to education over time: A Korean case study," Economics of Education Review, Elsevier, vol. 12(1), pages 71-80, March.
    6. Glewwe, Paul, 1996. "The relevance of standard estimates of rates of return to schooling for education policy: A critical assessment," Journal of Development Economics, Elsevier, vol. 51(2), pages 267-290, December.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    8. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
    9. Alba-Ramirez, Alfonso & San Segundo, Maria Jesus, 1995. "The returns to education in Spain," Economics of Education Review, Elsevier, vol. 14(2), pages 155-166, June.
    10. Falaris, Evangelos M, 1995. "The Role of Selectivity Bias in Estimates of the Rate of Return to Schooling: The Case of Married Women in Venezuela," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 333-350, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:7:y:2001:i:4:p:479-504:10.1007/bf02295776. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.