Changes in return to higher education in Poland 1998-2005
In the article private rate of return to higher education in the 1998-2005 period is considered. The model is based on a comparative advantage theory. Extended Mincerian wage equation is used to account for a non-random decision to undertake studies at university level. The estimate of private rate of return in Poland is roughly 9%, and it is among the highest in Europe. In addition, the unexpected rise in rate of return is observed. Moreover, positive relationship between graduation and the obtained wages was found. This change has been linked to labour market transformation and Skill Biased Technical Change. Also the influence of financing tertiary education is considered.
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