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Education, Gender and Earnings in France and Germany: Level and Dispersion Effects

  • Lauer, Charlotte
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    This paper analyses the relationship between education, gender and earnings in France and Germany. The model chosen here enables to estimate the impact of education not only on the expected earnings level but also on their dispersion, taking gender-specific sample selectivity into account. The results indicate that the completion of a minimum level of general instruction yields an earnings premium that cannot compensated by a vocational degree. Moreover, education affects the uncertainty of earnings. General qualifications are found to increase the earnings risk, vocational one to reduce it. More education, especially tertiary education, yields a high earnings premium but is associated with the highest earnings uncertainty. Women enjoy a higher earnings premium for education than men and though they face overall a higher earnings uncertainty, they can - more than men - reduce this risk by investing in their education.

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    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 04-54.

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    Date of creation: 2004
    Date of revision:
    Handle: RePEc:zbw:zewdip:2192
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    1. Weber, Andrea Maria & Lauer, Charlotte, 2003. "Employment of Mothers After Childbirth: French-German Comparison," ZEW Discussion Papers 03-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Lauer, Charlotte, 2001. "Educational attainment: a French-German comparison," ZEW Dokumentationen 01-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Pereira, Pedro Telhado & Martins, Pedro Silva, 2002. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," Discussion Papers 709, The Research Institute of the Finnish Economy.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    5. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003. "Fifty Years of Mincer Earnings Regressions," NBER Working Papers 9732, National Bureau of Economic Research, Inc.
    6. William W. Gould & Jeffrey Pitblado & Brian Poi, 2010. "Maximum Likelihood Estimation with Stata," Stata Press books, StataCorp LP, edition 4, number ml4, November.
    7. Hildegard Brauns & Walter Müller & Susanne Steinmann, 1997. "Educational Expansion and Returns to Education. A Comparative Study on Germany, France, the UK, and Hungary," MZES Working Papers 23, MZES.
    8. Lauer, Charlotte, 2003. "Education and Unemployment: A French-German Comparison," ZEW Discussion Papers 03-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc.
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