IDEAS home Printed from
   My bibliography  Save this article

Evaluating Educational Output: An Estimation Method Based on Cross-Section Data


  • M. C. Navarro-Perez
  • J. M. Serrano-Sanz


One of the ways to evaluate educational output rests on its consideration as an investment. A part of the returns can be identified as the differential earnings obtained by individuals with a higher education level. The most common information on the earnings obtained by individuals comes in the form of cross-section data.These must be transformed in order to obtain a life-cycle earnings series from which the effects of education must be isolated. This paper defines a model adapted to the use of cross-section data, which allows us to both rank and respond to the different information problems that successively appear, as well as to propose a classification for the adjustments by which the earnings must be corrected, on the basis of the reasons that justify such adjustments and their order of application.The empirical application of the methodology is directed towards estimating the value of university education in Spain on the basis of the criteria discussed earlier in the paper.

Suggested Citation

  • M. C. Navarro-Perez & J. M. Serrano-Sanz, 2002. "Evaluating Educational Output: An Estimation Method Based on Cross-Section Data," Education Economics, Taylor & Francis Journals, vol. 10(1), pages 71-95.
  • Handle: RePEc:taf:edecon:v:10:y:2002:i:1:p:71-95 DOI: 10.1080/09645290110110218

    Download full text from publisher

    File URL:
    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

    1. Dolton, Peter J & Greenaway, David & Vignoles, Anna, 1997. "'Whither Higher Education?' An Economic Perspective for the Dearing Committee of Inquiry," Economic Journal, Royal Economic Society, vol. 107(442), pages 710-726, May.
    2. Imbens, G. & Angrist, J.D., 1992. "Average Causal Response with Variable Treatment Intensity," Harvard Institute of Economic Research Working Papers 1611, Harvard - Institute of Economic Research.
    3. Dale W. Jorgenson & Barbara M. Fraumeni, 1992. "The Output of the Education Sector," NBER Chapters,in: Output Measurement in the Service Sectors, pages 303-341 National Bureau of Economic Research, Inc.
    4. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    5. Wise, David A, 1975. "Academic Achievement and Job Performance," American Economic Review, American Economic Association, vol. 65(3), pages 350-366, June.
    6. Psacharopoulos, George, 1996. "Economics of education: A research agenda," Economics of Education Review, Elsevier, vol. 15(4), pages 339-344, October.
    7. Gyimah-Brempong, Kwabena & Gyapong, Anthony O., 1991. "Characteristics of education production functions: An application of canonical regression analysis," Economics of Education Review, Elsevier, vol. 10(1), pages 7-17, March.
    8. Orley Ashenfelter & David J. Zimmerman, 1997. "Estimates Of The Returns To Schooling From Sibling Data: Fathers, Sons, And Brothers," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 1-9, February.
    9. Boissiere, M & Knight, J B & Sabot, R H, 1985. "Earnings, Schooling, Ability, and Cognitive Skills," American Economic Review, American Economic Association, vol. 75(5), pages 1016-1030, December.
    10. Altonji, Joseph G & Dunn, Thomas A, 1996. "The Effects of Family Characteristics on the Return to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 692-704, November.
    11. Bruce W. Wilkinson, 1966. "Present Values of Lifetime Earnings for Different Occupations," Journal of Political Economy, University of Chicago Press, vol. 74, pages 556-556.
    12. Murnane, Richard J & Willett, John B & Levy, Frank, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 251-266, May.
    13. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
    14. Rosen, Sherwin, 1976. "A Theory of Life Earnings," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 45-67, August.
    15. Tolley, George S & Olson, E, 1971. "The Interdependence between Income and Education," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 460-480, May-June.
    16. George Psacharopoulos & Richard Layard, 1979. "Human Capital and Earnings: British Evidence and a Critique," Review of Economic Studies, Oxford University Press, vol. 46(3), pages 485-503.
    17. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    18. Sara de la Rica & Arantza Ugidos, 1995. "¿Son las diferencias en capital humano determinantes en las diferencias salariales observadas entre hombres y mujeres?," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 395-414, September.
    19. Ahlroth, Sofia & Bjorklund, Anders & Forslund, Anders, 1997. "The Output of the Swedish Education Sector," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 89-104, March.
    20. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352-352.
    21. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    22. Ashenfelter, Orley & Krueger, Alan B, 1994. "Estimates of the Economic Returns to Schooling from a New Sample of Twins," American Economic Review, American Economic Association, vol. 84(5), pages 1157-1173, December.
    23. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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:taf:edecon:v:10:y:2002:i:1:p:71-95. 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: (Chris Longhurst). General contact details of provider: .

    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.