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External Return to Education in Europe

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  • STRAWINSKI Pawel

Abstract

This paper provides an international comparison of external rates of return to education. As is pointed out in the literature social return rate exceeds the pure technical rate of return by a considerable margin. However, measuring social return is delicate due to methodological and data problems. The exploited approach is based on a comparative advantage theory. It allows us to control for potential endogeneity problem and a self-selection into different education regimes. We find that external return is positive in all European countries. However the magnitude of these returns varies. It seems that the external return is higher in small economies in which the number of highly educated people is low.

Suggested Citation

  • STRAWINSKI Pawel, 2009. "External Return to Education in Europe," IRISS Working Paper Series 2009-09, IRISS at CEPS/INSTEAD.
    • Handle: RePEc:irs:iriswp:2009-09
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    References listed on IDEAS

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    Cited by:

    1. Ozan Bakis & Nurhan Davutyan & Haluk Levent & Sezgin Polat, 2013. "Quantile Estimates for Social Returns to Education in Turkey: 2006–2009," Middle East Development Journal, Taylor & Francis Journals, vol. 5(3), pages 1350017-131, January.
    2. VERME Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.

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