Khan, Shahrukh R. and Mohammad, Irfan (1990): Disaggregating rates of return to education.
Download (518kB) | Preview
Education is effectively used as a discontinuous variable in studies estimating the rates of return by level of education. We find that the normal procedure used for estimating the rate of return to broad aggregates such as secondary and high understates the returns to these levels and subsequently suggest a procedure for rectifying this bias. We also find, as expected, that broad aggregations that ignore sub-levels of education result in a loss of important insights about the interaction of education and the labor market.
|Item Type:||MPRA Paper|
|Original Title:||Disaggregating rates of return to education|
|Keywords:||Estimating the rates of return; Education; Labor Market|
|Subjects:||P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P36 - Consumer Economics ; Health ; Education and Training ; Welfare, Income, Wealth, and Poverty
I - Health, Education, and Welfare > I2 - Education and Research Institutions
P - Economic Systems > P3 - Socialist Institutions and Their Transitions
H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations
N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
|Depositing User:||Nabeela Arshad|
|Date Deposited:||04 Jun 2012 13:38|
|Last Modified:||03 Aug 2016 16:44|
Becker, G. S., Human Capital (New York: National Bureau of Economic Research, 1975).
Berry, A., "Education, Income, Productivity and Urban Poverty," in ed. T. King, Education and Income, Staff Working Paper No. 402 (Washington, D. C.: World Bank, July 1980).
Blau, D. M., J. R. Behrman and B. L. Wolfe, "Schooling and Earnings Distributions with Endogenous Labour Force Participation, Martial Status and Family Size," Economica, 55, (August, 1988), 297-316.
Blaug, M., "A Cost-Benefit Approach To Educational Planning in Developing Countries," Economics Department Report No. EC 157 (Washington D. C.: World Bank, 1967).
Boissiere, M., J. B. Knight and R. H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills, American Economic Review, 75, (December 1985) 1016-1030.
Fields, G. S., "Assesing Educational Progress and Commitment," Report for the U. S. Agency for International Development (Ith.ca: Cornell, 1978).
Gullison, E. T., "New Evidence Supporting the Screening Hypothesis," Atlantic Economic Journal, 17, (June 1989), 80.
Houthhakker, H. S., "Education and Income," The Review of Economics and Statistics, 51, (February, 1959), 24-28.
Hungerford, T., and G. Salon, "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, 69, (February, 1987), 175-177.
Jimenez, E. and J. Tan, "Educational Development in Pakistan," Discussion Paper No. EDT 16, (Washington, D. C.: World Bank, December 1985).
Kazi, S. and Z. A. Sathar, "Differences in Household Characteristics by Income Distribution in Pakistan," Pakistan Development Review, 24, (Autumn-Winter 1985), 657- 667.
Knight, J. B., and R. H. Sabot, "The Rate of Return to Educational Expansion," Economics of Education Review, 6, (Fall, 1987), 255-62.
Mincer, J., Schooling Experience and Earnings (New York: National Bureau of Economic Research, 1974)
Mingat, A., and J. Tan, Analytical Tools for Sector Work in Education (Baltimore: The Johns Hopkins University Press, 1988) .
Pakistan, Household Income and Expenditure Survey (Islamabad:Federal Bureau of Statistics, Statistics Division, 1979, 1983).
Pakistan, 1984-85 Household Income and Expenditure Survey (Islamabad: Federal Bureau of Statistics, Statistics Division, 1985).
Psacharopoulos, G, "Returns to Education: A Further International Update," Journal of Human Resources, 20, (Winter, 1985), 583-604.
Psacharopoulos, G, Education for Development: An Analysis of Investment Choices (New York: Oxford University Press, 1985a).
Schultz, T. P., "Education Investments and Returns," in eds. H. Chinery and T. N. Srinivasan, Handbook of Development Economics, Vol 1. (New York: Elsevier Science Publishers, 1988).
Schultz, T. P., "Returns to Education in Bogota, Columbia," Report-No. RM-5645 (Santa Monica: Rand Corporation, 1968).