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The effect of lifelong learning on men’s wages

Author

Listed:
  • Richard Dorsett

    (National Institute of Economic and Social Research)

  • Silvia Lui

    (National Institute of Economic and Social Research
    Rijksuniversitet Groningen)

  • Martin Weale

    () (National Institute of Economic and Social Research
    Queen Mary University of London)

Abstract

Abstract This paper develops a model of earnings and applies this to an examination of the effect of lifelong learning on men’s wages. Using data from the British Household Panel Survey, a variant of the mover–stayer model is developed in which hourly wages are either taken from a stationary distribution (movers) or closely related to the hourly wage one year earlier (stayers). Mover–stayer status is not observed, and we therefore model wages using an endogenous switching regression, estimated by maximum likelihood. Methodologically, the results support the mover–stayer characterisation since the restrictions required for the simpler specifications popular in the literature are rejected. Substantively, simulation of the estimated model shows some statistically significant effects from acquiring qualifications of a higher level than those previously held, but not from acquiring qualifications of the same level.

Suggested Citation

  • Richard Dorsett & Silvia Lui & Martin Weale, 2016. "The effect of lifelong learning on men’s wages," Empirical Economics, Springer, vol. 51(2), pages 737-762, September.
  • Handle: RePEc:spr:empeco:v:51:y:2016:i:2:d:10.1007_s00181-015-1024-x
    DOI: 10.1007/s00181-015-1024-x
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    References listed on IDEAS

    as
    1. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
    2. Anna Vignoles & Augustin de Coulon, 2008. "An Analysis of the Benefit of NVQ2 Qualifications Acquired at Age 26-34," CEE Discussion Papers 0106, Centre for the Economics of Education, LSE.
    3. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 251-299.
    4. Matt Dickson, 2013. "The Causal Effect of Education on Wages Revisited," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 477-498, August.
    5. Lorenzo Cappellari & Stephen P. Jenkins, 2008. "Estimating low pay transition probabilities accounting for endogenous selection mechanisms," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 57(2), pages 165-186, April.
    6. Fernando Galindo-Rueda & Andrew Jenkins & Anna Vignoles & Alison Wolf, 2002. "The Determinants and Effects of Lifelong Learning," CEE Discussion Papers 0019, Centre for the Economics of Education, LSE.
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    10. Audrey Light, 1995. "The Effects of Interrupted Schooling on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 472-502.
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    12. Blanden, Jo & Buscha, Franz & Sturgis, Patrick & Urwin, Peter, 2010. "Measuring the returns to lifelong learning," LSE Research Online Documents on Economics 28282, London School of Economics and Political Science, LSE Library.
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    More about this item

    Keywords

    Lifelong learning; Returns to education; Switching regression; Wage dynamics;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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