Comparable Estimates of Returns to Schooling around the World

Comparable Estimates of to around the

Claudio E. Montenegro

World Bank and Department of Economics, University of Chile

Harry Anthony Patrinos

World Bank

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.

JEL codes: C13, J31

Keywords: Returns to schooling; Returns to experience; Investments in education

 

One thought on “Comparable Estimates of Returns to Schooling around the World

  1. Fantastic work!!! Congrats!!! Sure this will be an obligatory reference in education.

    Abrazos Jefe

    Enviado desde mi iPhone

    > El 22 dic 2015, a las 8:09 p.m., Harry Patrinos escribió: > > >

    Like

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