Earnings, Schooling and Economic Reform: Econometric Evidence from Hungary (1986-2004)
How does the relationship between earnings and schooling change with the introduction of comprehensive economic reform? This paper sheds light on this question using a unique data set and procedure to reduce sample selection bias. Our evidence is from consistently coded, non-retrospective data for about 4 million Hungarian wage earners. We find that returns to skill increased by 75 percent from 1986 to 2004 (that is, during the period stretching from communism to full membership in the European Union). Moreover, our results identify winners and losers from reform. Winners were the college and university educated and those employed in the services sector (which excludes those in public services). Our results show that reform losers were those in construction and agriculture, those who attained only primary or vocational education (who actually experience a decrease in the returns to their education) as well as those younger workers which acquired most of their education after the collapse of communism (that is, after the main reforms were in place).
|Date of creation:||Mar 2007|
|Date of revision:|
|Publication status:||published in: World Bank Economic Review, 2007, 21 (3), 509-526|
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- Nauro F. Campos & Roman Horváth, 2006.
"Reform Redux: Measurement, Determinants and Reversals,"
Working Papers IES
2006/16, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2006.
- Campos, Nauro F & Horváth, Roman, 2006. "Reform Redux: Measurement, Determinants and Reversals," IZA Discussion Papers 2093, Institute for the Study of Labor (IZA).
- Campos, Nauro F & Horváth, Roman, 2006. "Reform Redux: Measurement, Determinants and Reversals," CEPR Discussion Papers 5673, C.E.P.R. Discussion Papers.
- Nauro F. Campos & Roman Horvath, 2009. "Reform Redux: Measurement, Determinants and Reversals," Working Papers 2009/6, Czech National Bank, Research Department.
- Hunt, Jennifer, 1998.
"The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?,"
CEPR Discussion Papers
1805, C.E.P.R. Discussion Papers.
- Jennifer Hunt, 2002. "The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 148-169, January.
- Jennifer Hunt, 1997. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," NBER Working Papers 6167, National Bureau of Economic Research, Inc.
- Jennifer Hunt, 1997. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," Discussion Papers of DIW Berlin 156, DIW Berlin, German Institute for Economic Research.
- Jolliffe, Dean & Campos, Nauro F., 2005.
"Does market liberalisation reduce gender discrimination? Econometric evidence from Hungary, 1986-1998,"
Elsevier, vol. 12(1), pages 1-22, February.
- Dean Jolliffe & Nauro F. Campos, 2004. "Does Market Liberalisation Reduce Gender Discrimination? Econometric Evidence from Hungary, 1986—1998," William Davidson Institute Working Papers Series 2004-678, William Davidson Institute at the University of Michigan.
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