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Education and Earnings in Europe

Author

Listed:
  • Patrinos, Harry Anthony
  • Rivera-Olvera, Angelica

Abstract

Schooling increases earnings but getting causal information on the impact of schooling requires generating evidence from policy changes. In this paper, we estimate causal effects of additional education on earnings using new compulsory schooling law data across 16 European countries. We use recent and comparable microdata and analyze the impact of reforms on schooling and earnings. Results show that a year of education substantially increases earnings, especially for those with tertiary education.

Suggested Citation

  • Patrinos, Harry Anthony & Rivera-Olvera, Angelica, 2026. "Education and Earnings in Europe," GLO Discussion Paper Series 1800, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1800
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    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
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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