Rates of Return to Schooling and the Quality of Education in England and Wales
Raising the quality of education has been one of the main objectives of the current government in Britain. By devoting more resources to the education sector, it is expected that pupils will achieve higher educational attainment by the time their years of compulsory schooling ends. This study attempts to assess the effect that the quality of schooling has on the subsequent labour market outcomes of a cohort of individuals who received their secondary education in the 1970s. In the first stage of the statistical analysis, an earnings equation is estimated for those in employment at age 33 which produces an estimate of the return to schooling for each local education authority (LEA) in England and Wales. It is found that the return to schooling varies across LEAs, ranging from 6% to 18%. For the second part of the analysis, these LEA-specific returns are regressed on variables capturing the mean level of school quality in each LEA. The results provide little evidence that measures of quality, such as the pupil-teacher ratio, influence the return received for each year of schooling. Some evidence is found, however, that segregating pupils according to ability is beneficial on average since the greatest returns to schooling are observed in LEAs offering selective schools.
|Date of creation:||Aug 2001|
|Date of revision:|
|Contact details of provider:|| Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP|
Phone: +44 (0)1227 827497
Web page: http://www.kent.ac.uk/economics/
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Card, David & Krueger, Alan B, 1992.
"Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States,"
Journal of Political Economy,
University of Chicago Press, vol. 100(1), pages 1-40, February.
- David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
- Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November.
- Altonji, Joseph G & Dunn, Thomas A, 1996.
"Using Siblings to Estimate the Effect of School Quality on Wages,"
The Review of Economics and Statistics,
MIT Press, vol. 78(4), pages 665-71, November.
- Joseph G. Altonji & Thomas A. Dunn, . "Using Siblings to Estimate the Effect of School Quality on Wages," IPR working papers 96-10, Institute for Policy Resarch at Northwestern University.
- Lorraine Dearden, 1999. "Qualifications and earnings in Britain: how reliable are conventional OLS estimates of the returns to education?," IFS Working Papers W99/07, Institute for Fiscal Studies.
- Lorraine Dearden & Javier Ferri & Costas Meghir, 1998.
"The effect of school quality on educational attainment and wages,"
IFS Working Papers
W98/03, Institute for Fiscal Studies.
- Lorraine Dearden & Javier Ferri & Costas Meghir, 2002. "The Effect Of School Quality On Educational Attainment And Wages," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 1-20, February.
- Lorraine Dearden & Javier Ferri & Costas Meghir, 2000. "The effect of school quality on educational attainment and wages," IFS Working Papers W00/22, Institute for Fiscal Studies.
- Harmon, Colm & Walker, Ian, 2000. "The Returns to the Quantity and Quality of Education: Evidence for Men in England and Wales," Economica, London School of Economics and Political Science, vol. 67(265), pages 19-35, February.
- 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.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 231-50, May.
When requesting a correction, please mention this item's handle: RePEc:ukc:ukcedp:0115. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tracey Girling)
If references are entirely missing, you can add them using this form.