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Exploring International Differences in Rates of Return to Education: Evidence from EU SILC

Author

Listed:
  • Davia, Maria A.

    (Universidad de Castilla, La Mancha)

  • McGuinness, Seamus

    (ESRI)

  • O'Connell, Philip J.

    (ESRI)

Abstract

This paper uses EU-SILC data from 2005 and 2006 to explore the hypothesis that international differences in rates of return to education reflect variations in the level of risk associated with educational investments. While there was some evidence to support this hypothesis with regards to returns to ISCED level 5 qualifications among males, the majority of the variation in international returns was related to distributional impacts. The results suggest that higher rates of return to more advanced qualifications relate to more dispersed distributions among poorly qualified workers which, in turn, raise the returns to credentials further up the educational spectrum.

Suggested Citation

  • Davia, Maria A. & McGuinness, Seamus & O'Connell, Philip J., 2009. "Exploring International Differences in Rates of Return to Education: Evidence from EU SILC," Papers WP311, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp311
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    File URL: http://www.esri.ie/pubs/WP311.pdf
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    References listed on IDEAS

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    1. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
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    Cited by:

    1. Mendolicchio, Concetta & Rhein, Thomas, 2011. "The gender gap of returns on education across West European countries," IAB Discussion Paper 201120, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Concetta Mendolicchio & Thomas Rhein, 2014. "The gender gap of returns on education across West European countries," International Journal of Manpower, Emerald Group Publishing, vol. 35(3), pages 219-249, May.

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