Education, occupational class, and unemployment in the regions of the United Kingdom
Students in many countries face increased costs of education in the form of direct payments and future tax liabilities and, as a consequence, their education decisions have taken on a greater financial dimension. This has refocused attention on obtaining meaningful estimates of the return to education. Routinely these returns are estimated as the additional earnings derived by an individual following their acquisition of an additional one year of education. However, the use of earnings data in this context is not without methodological problems including likely attenuation and ability bias in measuring the earnings/education relationship, issues concerning the appropriate rate of discount to apply to observed earnings gains and the appropriateness of using years-of-education as the measure of educational attainment. In this paper we explore the use of an alternative means of assessing returns to education by examining shifts in the likelihood of gaining 'labour market success' from various levels of educational qualification within the framework of an ordered logit model. This method offers three distinct advantages: it favours the use of data from the Sample of anonymised records of the 2001 Census for the United Kingdom of Great Britain and Northern Ireland, which, in turn, allows the joint consideration of most of the control variables thought to influence returns to education; it focuses upon the prime source of pecuniary returns to education (labour market success); and it gives expression to the 'screening device' and the 'credentials' aspects of education by focusing upon the importance of qualifications gained rather than the number of years spent in education.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 16 (2008)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CEDE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CEDE20|
When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:16:y:2008:i:4:p:351-370. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.