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Linearity of the return to education and self selection


  • Marta Sanmartin


This paper investigates the earnings-education profile in Spain. First no functional form is imposed on this relation but instead dummy variables are used for each year of education. Second, different alternatives are analysed until the best parametric form is found. Moreover problems related to the self selection of individuals and to the segmentation of the labour market based on the educational level are considered. The main results indicate that the effect of education on earnings is not significant until individuals finish secondary education and from there onwards the relationship can be considered linear.

Suggested Citation

  • Marta Sanmartin, 2001. "Linearity of the return to education and self selection," Applied Economics, Taylor & Francis Journals, vol. 33(1), pages 133-142.
  • Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:133-142
    DOI: 10.1080/00036840121772

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    References listed on IDEAS

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    Cited by:

    1. Savanti, Maria Paula & Patrinos, Harry Anthony, 2005. "Rising returns to schooling in Argentina, 1992-2002 : productivity or credentialism?," Policy Research Working Paper Series 3714, The World Bank.
    2. Claudio Sapelli., 2009. "Los Retornos a la Educación en Chile: Estimaciones por Corte Transversal y por Cohortes," Documentos de Trabajo 349, Instituto de Economia. Pontificia Universidad Católica de Chile..
    3. Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," COLOMBIAN ECONOMIC JOURNAL, UN - RCE - CID, April.
      • Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 95-108, December.
    4. A. Nikolaou & I. Theodossiou, 2006. "Returns to qualifications and occupation for males and females: evidence from the British Workplace Employee Relations Survey (WERS) 1998," Applied Economics Letters, Taylor & Francis Journals, vol. 13(10), pages 665-673.
    5. Keefer, Philip & Khemani, Stuti, 2003. "Democracy, public expenditures, and the poor," Policy Research Working Paper Series 3164, The World Bank.

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