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The return to higher education: evidence from Romania

Author

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  • Oancea, Bogdan
  • Pospisil, Richard
  • Dragoescu, Raluca

Abstract

Education is one of the most important components of the human capital, and an important determinant of the personal income. Estimating the rate of return to education is a main topic of economic research. In this paper we analyzed the rate of return to higher education in Romania using the well-known Mincer equation. Besides the educational level and the number of years of experience on the labor market we also used a series of socio-demographic variables such as gender, civil status, the area of residence. We were interested mainly in calculating the rate of return to higher education, therefore we computed this rate for bachelor, master and doctoral degrees separately. We also investigated the rate of return to higher education on technical, science, economics, law, medicine, and arts fields. Our results showed that the rate of return to higher education has a greater value than most of the developed countries of EU and the field of higher education that brings the highest rate of return is medicine

Suggested Citation

  • Oancea, Bogdan & Pospisil, Richard & Dragoescu, Raluca, 2017. "The return to higher education: evidence from Romania," MPRA Paper 81720, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:81720
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    References listed on IDEAS

    as
    1. Colm Harmon; & Ian Walker, 1995. "Estimates of Economic Return to Schooling in the UK," Economics, Finance and Accounting Department Working Paper Series n540195, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
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    More about this item

    Keywords

    Mincer equation; higher education; returns to education;

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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