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The Impact of the Transition and EU Membership on the Returns to Schooling in Europe

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  • Patrinos,Harry Anthony
  • Rivera-Olvera,Angelica

Abstract

Countries across Eastern Europe and Central Asia are in their third decade of independence. Whatimpact does this have on the skills premium and does accession to the European Union have an impact on thereturns to education The returns to education in 28 transition and 20 non-transition countries in Europe andCentral Asia are analyzed using panel data analysis and difference-in-difference methods to estimate the impact oftransition and EU accession. It is found that the transition from a centrally planned economy to a market economyincreases the returns to schooling in post-socialist countries positively and significantly, especially throughthe EU accession channel.

Suggested Citation

  • Patrinos,Harry Anthony & Rivera-Olvera,Angelica, 2023. "The Impact of the Transition and EU Membership on the Returns to Schooling in Europe," Policy Research Working Paper Series 10496, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10496
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    More about this item

    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
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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