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Returns to education in Greece: Causal evidence from the 1977 labor market survey

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  • Patrinos, Harry Anthony

Abstract

We estimate the causal effect of schooling on log earnings using instrumental variables (IV), addressing the endogeneity of schooling by using father's education as an instrument. The IV estimate implies a return of approximately 7.7 percent per additional year of schooling. First-stage and endogeneity tests confirm instrument strength and the need for IV.

Suggested Citation

  • Patrinos, Harry Anthony, 2025. "Returns to education in Greece: Causal evidence from the 1977 labor market survey," GLO Discussion Paper Series 1674, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1674
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    References listed on IDEAS

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    1. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," Working Papers 696, Princeton University, Department of Economics, Industrial Relations Section..
    2. Harry A Patrinos, 2022. "Returns to Education in Greece: Evidence from the 1977 Labor Market Survey using the Greek Civil War as an Instrument," Economics Bulletin, AccessEcon, vol. 42(1), pages 288-293.
    3. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute of Labor Economics (IZA).
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    6. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," Working Papers 696, Princeton University, Department of Economics, Industrial Relations Section..
    7. Ilias Livanos & Konstantinos Pouliakas, 2011. "Wage returns to university disciplines in Greece: are Greek higher education degrees Trojan Horses?," Education Economics, Taylor & Francis Journals, vol. 19(4), pages 411-445, December.
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    9. Shoya Ishimaru, 2024. "Empirical Decomposition of the IV-OLS Gap with Heterogeneous and Nonlinear Effects," The Review of Economics and Statistics, MIT Press, vol. 106(2), pages 505-520, March.
    10. Patrinos, Harry Anthony, 1995. "Socioeconomic background, schooling, experience, ability and monetary rewards in Greece," Economics of Education Review, Elsevier, vol. 14(1), pages 85-91, March.
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    15. Michael Chletsos & Stelios Roupakias, 2020. "Education and wage inequality before and during the fiscal crisis: A quantile regression analysis for Greece 2006–2016," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1333-1364, November.
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    Keywords

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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