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Expansion of Higher Education, Employment and Wages: Evidence from the Russian Transition

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  • Natalia Kyui

Abstract

This paper analyzes the effects of an educational system expansion on labour market outcomes, drawing upon a 15-year natural experiment in the Russian Federation. Regional increases in student intake capacities in Russian universities, a result of educational reforms, provide a plausibly exogenous variation in access to higher education. Additionally, the gradual nature of this expansion allows for estimation of heterogeneous returns to education for individuals who successfully took advantage of increasing educational opportunities. Using simultaneous equations models and a non-parametric model with essential heterogeneity, the paper identifies strong positive returns to education in terms of employment and wages. Marginal returns to higher education are estimated to decline for lower levels of individual unobserved characteristics that positively influence higher education attainment. Finally, the returns to higher education are found to decrease for those who, as a result of the reforms, increasingly pursued higher education.

Suggested Citation

  • Natalia Kyui, 2013. "Expansion of Higher Education, Employment and Wages: Evidence from the Russian Transition," Staff Working Papers 13-45, Bank of Canada.
  • Handle: RePEc:bca:bocawp:13-45
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    References listed on IDEAS

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    Cited by:

    1. Nobuyoshi Kikuchi, 2017. "Marginal Returns to Schooling and Education Policy Change in Japan," ISER Discussion Paper 0996r, Institute of Social and Economic Research, Osaka University, revised Oct 2017.
    2. Nobuyoshi Kikuchi, 2017. "Marginal Returns to Schooling and Education Policy Change in Japan," ISER Discussion Paper 0996, Institute of Social and Economic Research, Osaka University.

    More about this item

    Keywords

    Development economics; Labour markets;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I20 - Health, Education, and Welfare - - Education - - - General

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