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Returns to Education in Four Transition Countries: Quantile Regression Approach

Author

Listed:
  • Staneva, Anita

    (Griffith University)

  • Arabsheibani, Reza

    (London School of Economics)

  • Murphy, Philip D.

    (Swansea University)

Abstract

This paper uses quantile regression techniques to analyze heterogeneous patterns of return to education across the conditional wage distribution in four transition countries. We correct for sample selection bias using a procedure suggested by Buchinsky (2001), which is based on a Newey (1991, 2009) power series expansion. We also examine the empirical implications of allowing for the endogeneity of schooling, using the control function approach proposed by Lee (2007). Using household data from Bulgaria, Russia, Kazakhstan and Serbia in 2003, we show that the return to education is heterogeneous across the earnings distribution. It is also found that accounting for the endogeneity of schooling leads to a higher rate of return to education.

Suggested Citation

  • Staneva, Anita & Arabsheibani, Reza & Murphy, Philip D., 2010. "Returns to Education in Four Transition Countries: Quantile Regression Approach," IZA Discussion Papers 5210, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5210
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    Citations

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    Cited by:

    1. Tamar Khitarishvili, 2018. "Gender Pay Gaps in the Former Soviet Union: A Review of the Evidence," Economics Working Paper Archive wp_899, Levy Economics Institute.
    2. Federico Favata & Sofia Zamparo, 2021. "Estimación del efecto de la segregación ocupacional por sexo en el ingreso laboral para Argentina (2016-2020)," Asociación Argentina de Economía Política: Working Papers 4467, Asociación Argentina de Economía Política.
    3. Niels-Hugo Blunch, 2018. "Just like a woman? New comparative evidence on the gender income gap across Eastern Europe and Central Asia," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-41, December.
    4. Walter Sosa Escudero & Javier Alejo & Leonardo Gasparini & Gabriel Montes Rojas, 2021. "A decomposition method to evaluate the "paradox of progress", with evidence for Argentina," Asociación Argentina de Economía Política: Working Papers 4523, Asociación Argentina de Economía Política.
    5. Stoilova, Rumiana & Simeonova-Ganeva, Ralitsa & Kotzeva, Tatyana, 2011. "The Impact of Gender on Mid-Career Labour Income: The Case of Bulgaria," MPRA Paper 53353, University Library of Munich, Germany, revised 2011.
    6. Tindara Addabbo & Donata Favaro & Stefano Magrini, 2012. "Gender differences in productivity rewards: the role of human capital," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 59(1), pages 81-110, March.
    7. Rosalia Castellano & Gennaro Punzo, 2016. "Patterns of earnings differentials across three conservative European welfare regimes with alternative education systems," Journal of Applied Statistics, Taylor & Francis Journals, vol. 43(1), pages 140-168, January.

    More about this item

    Keywords

    quantile regression; endogeneity; rate of return to education; sample selection;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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