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Comparable estimates of returns to schooling around the world

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  • Montenegro, Claudio E.
  • Patrinos, Harry Anthony

Abstract

Rates of return to investments in schooling have been estimated since the late 1950s. In the 60-plus year history of such estimates, there have been several attempts to synthesize the empirical results to ascertain patterns. This paper presents comparable estimates, as well as a database, that use the same specification, estimation procedure, and similar data for 139 economies and 819 harmonized household surveys. This effort to compile comparable estimates holds constant the definition of the dependent variable, the set of control variables, the sample definition, and the estimation method for all surveys in the sample. The results of this study show that (1) the returns to schooling are more concentrated around their respective means than previously thought; (2) the basic Mincerian model used is more stable than may have been expected; (3) the returns to schooling are higher for women than for men; (4) returns to schooling and labor market experience are strongly and positively associated; (5) there is a decreasing pattern over time; and (6) the returns to tertiary education are highest.

Suggested Citation

  • Montenegro, Claudio E. & Patrinos, Harry Anthony, 2014. "Comparable estimates of returns to schooling around the world," Policy Research Working Paper Series 7020, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7020
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Le défi de l’accès et de la qualité de l’éducation dans les pays en développement
      by ? in BSI Economics - Think tank en économie et finance - BSI Economics - Think tank en économie et finance - BS Initiative - association d'économistes et actifs en banque et finance on 2015-02-05 15:54:00
    2. Education and economic development: Five reforms that have worked
      by ? in World Bank Blogs on 2017-03-21 07:00:00

    Citations

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    Cited by:

    1. Hausmann, Ricardo & Espinoza, Luis & Santos, Miguel Angel, 2016. "Shifting Gears: A Growth Diagnostic of Panama," Working Paper Series rwp16-045, Harvard University, John F. Kennedy School of Government.
    2. Cilliers, Jacobus & Kasirye, Ibrahim & Leaver, Clare & Serneels, Pieter & Zeitlin, Andrew, 2016. "Pay for Locally Monitored Performance? A Welfare Analysis for Teacher Attendance in Ugandan Primary Schools," IZA Discussion Papers 10118, Institute for the Study of Labor (IZA).
    3. Javier Torres & Jorge M. Agüero, 2017. "Stylized Facts about the Quantity and Quality of Parental Time Investments on the Skill Formation of Their Children," IDB Publications (Working Papers) 8215, Inter-American Development Bank.
    4. Kose,Ayhan & Ohnsorge,Franziska Lieselotte & Ye,Lei Sandy & Islamaj,Ergys, 2017. "Weakness in investment growth : causes, implications and policy responses," Policy Research Working Paper Series 7990, The World Bank.
    5. Ferran Mane & Daniel Miravet, 2016. "Using the job requirements approach and matched employer-employee data to investigate the content of individuals’ human capital
      [Messung von individuellem Humankapital auf Basis des „Jobanforderung      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(2), pages 133-155, October.
    6. Armida Alisjahbana & Viktor Pirmana, 2015. "Assessing Indonesia’s Long Run Growth: The Role of Total Factor Productivity and Human Capital," Working Papers in Economics and Development Studies (WoPEDS) 201503, Department of Economics, Padjadjaran University, revised Oct 2015.
    7. repec:eee:ecoedu:v:58:y:2017:i:c:p:108-122 is not listed on IDEAS
    8. Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2015. "Returns to skills around the world: Evidence from PIAAC," European Economic Review, Elsevier, vol. 73(C), pages 103-130.
    9. Faical Boutayeba, 2017. "Estimating the Returns to Education in Algeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(2), pages 147-153, June.
    10. Nelson Oviedo & Gustavo Yamada, 2017. "Educación superior y subempleo profesional, ¿Una creciente burbuja mundial?," Working Papers 1609, Departamento de Economía, Universidad del Pacífico, revised Feb 2017.
    11. Barrera-Osorio,Felipe & Blakeslee,David S. & Hoover,Matthew & Linden,Leigh & Raju,Dhushyanth & Ryan,Stephen P., 2017. "Delivering education to the underserved through a public-private partnership program in Pakistan," Policy Research Working Paper Series 8177, The World Bank.
    12. Florio, Massimo & Forte, Stefano & Sirtori, Emanuela, 2016. "Forecasting the socio-economic impact of the Large Hadron Collider: A cost–benefit analysis to 2025 and beyond," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 38-53.
    13. UNESCO Publishing, 2015. "The Economic Cost of Out-of-School Children in Southeast Asia," Working Papers id:7651, eSocialSciences.
    14. Cilliers, Jacobus & Kasirye, Ibrahim & Leaver, Clare & Serneels, Pieter & Zeitlin, Andrew, 2016. "Pay for Locally Monitored Performance? A Welfare Analysis for Teacher Attendance in Ugandan Primary Schools," IZA Discussion Papers 10118, Institute for the Study of Labor (IZA).
    15. Javier Torres & Jorge M. Agüero, 2017. "Stylized Facts about the Quantity and Quality of Parental Time Investments on the Skill Formation of Their Children," IDB Publications (Working Papers) 98156, Inter-American Development Bank.
    16. repec:col:000442:015654 is not listed on IDEAS

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    Keywords

    Primary Education; Education For All; Teaching and Learning; Debt Markets; Education Reform and Management;

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