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Lost in Transition? The Returns to Education Acquired under Communism 15 Years after the Fall of the Berlin Wall

  • Brunello, Giorgio

    ()

    (University of Padova)

  • Crivellaro, Elena

    ()

    (OECD)

  • Rocco, Lorenzo

    ()

    (University of Padova)

Using data for 22 economies in Eastern and Western Europe, we find evidence that having studied under communism is relatively penalized in the economies of the late 2000s. This evidence, however, is limited to males and to primary and secondary education, and holds for eight CEE economies but not for the East Germans who have studied in the former German Democratic Republic. We also find that post-secondary education acquired under communism yields higher, not lower, payoffs than similar education in Western Europe.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5409.

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Length: 46 pages
Date of creation: Dec 2010
Date of revision:
Publication status: published as 'Lost in Transition? The returns to education acquired under communism in the first decade of the new millennium' in: Economics of Transition, 2012, 20 (4), 637-676
Handle: RePEc:iza:izadps:dp5409
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  1. David Card & Jesse Rothstein, 2005. "Racial Segregation and the Black-White Test Score Gap," Working Papers 879, Princeton University, Department of Economics, Industrial Relations Section..
  2. Hanushek, Eric A. & Woessmann, Ludger, 2009. "Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation," IZA Discussion Papers 4575, Institute for the Study of Labor (IZA).
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  5. Francis Green & Yu Zhu, 2008. "Overqualification, Job Dissatisfaction, and Increasing Dispersion in the Returns to Graduate Education," Studies in Economics 0803, School of Economics, University of Kent.
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  7. Gebel, Michael & Pfeiffer, Friedhelm, 2007. "Educational expansion and its heterogeneous returns for wage workers," ZEW Discussion Papers 07-010, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
  9. Jurajda, Stepan, 2003. "Gender wage gap and segregation in enterprises and the public sector in late transition countries," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 199-222, June.
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  14. Campos, Nauro F & Jolliffe, Dean, 2007. "Earnings, Schooling and Economic Reform: Econometric Evidence from Hungary (1986-2004)," IZA Discussion Papers 2678, Institute for the Study of Labor (IZA).
  15. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
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