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Credential Changes and Education Earnings Premia in Australia

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  • Michael Coelli
  • Roger Wilkins

Abstract

We find that post-school education earnings premia have remained strikingly stable over the 1981 to 2003-04 period in Australia. This stability is in sharp contrast to the rising college premium observed in the US. The observed stability in Australia may in part be due to changes in the credentials earned by individuals entering certain professional occupations during the 1980s and early 1990s, particularly for females. We provide an estimate of the potential effect of within-occupation credential changes on estimates of education earnings premia in Australia over time. Our focus is on credential changes within the nursing and teaching professions, which have moved from predominately certificate and diploma qualifications to university bachelor’s degree or higher as the standard qualification

Suggested Citation

  • Michael Coelli & Roger Wilkins, 2008. "Credential Changes and Education Earnings Premia in Australia," Department of Economics - Working Papers Series 1037, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:1037
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    References listed on IDEAS

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    1. Jeff Borland, 1996. "Education and the Structure of Earnings in Australia," The Economic Record, The Economic Society of Australia, vol. 72(219), pages 370-380, December.
    2. Leigh, Andrew & Ryan, Chris, 2008. "Estimating returns to education using different natural experiment techniques," Economics of Education Review, Elsevier, vol. 27(2), pages 149-160, April.
    3. Leo Maglen, 1994. "Education Expansion And The Private Returns On A University Degree," Economic Papers, The Economic Society of Australia, vol. 13(4), pages 57-71, December.
    4. Miller, Paul & Mulvey, Charles & Martin, Nick, 2005. "Birth weight and schooling and earnings: estimates from a sample of twins," Economics Letters, Elsevier, vol. 86(3), pages 387-392, March.
    5. Jeff Borland, 2002. "New Estimates of the Private Rate of Return to University Education in Australia," Melbourne Institute Working Paper Series wp2002n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Vani Borooah & John Mangan, 2008. "Education, occupational class, and unemployment in the regions of the United Kingdom," Education Economics, Taylor & Francis Journals, vol. 16(4), pages 351-370.
    7. Nevile, J W & Saunders, Peter, 1998. "Globalization and the Return to Education in Australia," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 279-285, September.
    8. J. W. Nevile & Peter Saunders, 1998. "Globalization and the Return to Education in Australia," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 279-285, September.
    9. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.
    10. Borland, Jeff, 1996. "Education and the Structure of Earnings in Australia," The Economic Record, The Economic Society of Australia, vol. 72(219), pages 370-380, December.
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    Citations

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    Cited by:

    1. Tom Karmel, 2015. "Skills Deepening or Credentialism? Education Qualifications and Occupational Outcomes, 1996-2011," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 29-51.
    2. Owen Freestone, 2018. "The Drivers of Life‐Cycle Wage Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 424-444, December.
    3. Elisa R. Birch & Alison C. Preston, 2021. "The Evolving Wage Structure of Young Adults in Australia: 2001 to 2019," The Economic Record, The Economic Society of Australia, vol. 97(318), pages 365-386, September.
    4. Jeff Borland & Michael Coelli, 2016. "Labour Market Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 517-547, December.
    5. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    6. Arpita Chatterjee & Aarti Singh & Tahlee Stone, 2016. "Understanding Wage Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 348-360, September.
    7. Roger Wilkins & Mark Wooden, 2014. "Two Decades of Change: The Australian Labour Market, 1993–2013," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(4), pages 417-431, December.
    8. Kopatz, Susanne & Pilz, Matthias, 2015. "The Academic Takes it All? A Comparison of Returns to Investment in Education between Graduates and Apprentices in Canada," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 2(4), pages 308-325.
    9. Bryn Lampe & Catherine de Fontenay & Jessica Nugent & Patrick Jomini, 2022. "Climbing the Jobs Ladder Slower: Young People in a Weak Labour Market," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(1), pages 40-70, March.

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    More about this item

    Keywords

    education; earnings structure; wage premium; credentials; Australia;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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