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Rates of Return to Educational Qualifications in the Transitional Economies

  • Andrew Newell
  • Barry Reilly

This paper presents a set of cross-country estimates on rates of return within a broadly comparable framwork for a set of transitional economies that span Central and Eastern Europe, Russia and the Former Soviet Union countries of Central Asia. Our estimates reveal some tendency for rates to rise in most transitional economies over the period consideed. The variability in the rates of return to higher education is seen to provide some explanation for the variability in wage inequality experienced across the set of transitional economies.

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Article provided by Taylor & Francis Journals in its journal Education Economics.

Volume (Year): 7 (1999)
Issue (Month): 1 ()
Pages: 67-84

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Handle: RePEc:taf:edecon:v:7:y:1999:i:1:p:67-84
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  1. Nicole M. Fortin & Thomas Lemieux, 1997. "Institutional Changes and Rising Wage Inequality: Is There a Linkage?," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 75-96, Spring.
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  6. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, World Bank Group, vol. 9(2), pages 201-30, May.
  7. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
  8. Vincent Koen, 1995. "Price Measurement and Mismeasurement in Central Asia," IMF Working Papers 95/82, International Monetary Fund.
  9. Leijonhufvud, Axel & Ruhl, Christof, 1997. "Russian Dilemmas," American Economic Review, American Economic Association, vol. 87(2), pages 344-48, May.
  10. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
  11. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, 05.
  12. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
  13. Selowsky, Marcelo & Martin, Ricardo, 1997. "Policy Performance and Output Growth in the Transition Economies," American Economic Review, American Economic Association, vol. 87(2), pages 349-53, May.
  14. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571.
  15. Newell, Andrew & Reilly, Barry, 1996. "The gender wage gap in Russia: Some empirical evidence," Labour Economics, Elsevier, vol. 3(3), pages 337-356, October.
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