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Long-Run Effects of Catholic Schooling on Wages

Author

Listed:
  • Nilhil Jha

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

  • Cain Polidano

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

Abstract

Previous studies have linked Catholic schooling to higher academic achievement. We add to the literature on Catholic schooling by examining its effect on long-term wage rates in Australia, independent of effects on academic achievement. Using panel data from the Household, Income and Labour Dynamics Australia (HILDA) Survey and fixed effects estimation, we find that during the prime-time of a career, wage rates for Catholic school graduates progress with labor market experience at a greater rate, on average, than wage rates for public school graduates. Importantly, we find no evidence to suggest that these benefits are peculiar to Catholic schooling, with similar benefits estimated for graduates of independent private schools. These findings suggest that private schooling may be important in not only fostering higher academic achievement, but also in better preparing students for a working life.

Suggested Citation

  • Nilhil Jha & Cain Polidano, 2013. "Long-Run Effects of Catholic Schooling on Wages," Melbourne Institute Working Paper Series wp2013n39, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2013n39
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2013n39.pdf
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    References listed on IDEAS

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    1. Bettinger, Eric & Slonim, Robert, 2006. "Using experimental economics to measure the effects of a natural educational experiment on altruism," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1625-1648, September.
    2. Cardak, Buly A. & Vecci, Joe, 2013. "Catholic school effectiveness in Australia: A reassessment using selection on observed and unobserved variables," Economics of Education Review, Elsevier, vol. 37(C), pages 34-45.
    3. Brunello, Giorgio & Schlotter, Martin, 2011. "Non Cognitive Skills and Personality Traits: Labour Market Relevance and their Development in Education & Training Systems," IZA Discussion Papers 5743, Institute of Labor Economics (IZA).
    4. Calvo-Armengol, Antoni & Jackson, Matthew O., 2007. "Networks in labor markets: Wage and employment dynamics and inequality," Journal of Economic Theory, Elsevier, vol. 132(1), pages 27-46, January.
    5. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 791-821.
    6. George J. Borjas, 1980. "The Relationship between Wages and Weekly Hours of Work: The Role of Division Bias," Journal of Human Resources, University of Wisconsin Press, vol. 15(3), pages 409-423.
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    Cited by:

    1. Reilee L. Berger & John V. Winters, 2016. "Does Private Schooling Increase Adult Earnings? Cohort-Level Evidence for U.S. States," The Review of Regional Studies, Southern Regional Science Association, vol. 46(3), pages 281-294, Winter.

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    More about this item

    Keywords

    Catholic schooling; wages;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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