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Credential Changes and Education Earnings Premia in Australia

Author

Listed:
  • Michael Coelli

    (Department of Economics, The University of Melbourne)

  • Roger Wilkins

    () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

We find that post-school education earnings premia have remained strikingly stable over the 1981 to 2003-04 period in Australia. This stability is in sharp contrast to the rising college premium observed in the US. The observed stability in Australia may in part be due to changes in the credentials earned by individuals entering certain professional occupations during the 1980s and early 1990s, particularly for females. We provide an estimate of the potential effect of within-occupation credential changes on estimates of education earnings premia in Australia over time. Our focus is on credential changes within the nursing and teaching professions, which have moved from predominately certificate and diploma qualifications to university bachelor's degree or higher as the standard qualification.

Suggested Citation

  • Michael Coelli & Roger Wilkins, 2008. "Credential Changes and Education Earnings Premia in Australia," Melbourne Institute Working Paper Series wp2008n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2008n11
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2008n11.pdf
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    References listed on IDEAS

    as
    1. Borland, Jeff, 1996. "Education and the Structure of Earnings in Australia," The Economic Record, The Economic Society of Australia, vol. 72(219), pages 370-380, December.
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    1. repec:bla:ecorec:v:92:y:2016:i:299:p:517-547 is not listed on IDEAS
    2. Roger Wilkins & Mark Wooden, 2014. "Two Decades of Change: The Australian Labour Market, 1993–2013," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(4), pages 417-431, December.
    3. Arpita Chatterjee & Aarti Singh & Tahlee Stone, 2016. "Understanding Wage Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 348-360, September.
    4. Kopatz, Susanne & Pilz, Matthias, 2015. "The Academic Takes it All? A Comparison of Returns to Investment in Education between Graduates and Apprentices in Canada," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 2(4), pages 308-325.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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