The provision of education and its impacts on college premium in Brazil

Abstract

This paper tests the existence of causal relationship between the evolution of college-educated labor supply and the performance of the college premium in Brazil. Late college graduation causes sampling composition problem which may bias the impact of labor supply on the college premium. I estimate the impact of the relative supply of college-educated labor on wage, with and without controlling for the composition bias. In both cases, I find a relatively low elasticity of substitution between school groups. However, the estimate of the partial elasticity of substitution between age groups is crucially affected by the chosen estimation procedure.<br>Esse artigo testa a existência de relação causal entre a evolução da oferta de trabalhadores com qualificação universitária e a performance do diferencial salarial entre trabalhadores com nível universitário e trabalhadores com nível secundário, no Brasil. Graduação tardia causa problema de composição amostral que potencialmente viesa o impacto da oferta de trabalho sobre o premio salarial. Eu estimo o impacto da oferta relativa no diferencial de salarios, com e sem controlar os efeitos da graduação tardia. Em ambos os casos, eu encontro coeficientes de elasticidade de substituição baixo entre trabalhadores qualificados e não qualificados. Contudo, o procedimento adotado afeta decisivamente conclusões sobre a elasticidade de substituição entre diferentes grupos etários

A Cohort Analysis of the College Premium in Mexico

“…Equation (11) attempts to take into account dif ferences in the ef fective supply of labor by dif ferent groups. Card and Lemieux (2001) and Ferreira (2004) adopt a similar procedure. The dif ference is that Ferreira (2004) is unable to identify college dropouts in order to determine the respective labor ef ficiency, and therefore they are considered college-educated workers.…”

“…Within this framework, some recent studies have continued the line of imperfect substitution of workers between dif ferent age groups. Ferreira (2004) tests the existence of a causal relationship between the evolution of the college-educated labor supply and the behavior of the college premium in Brazil by decomposing the relative supply of college-educated workers into two components: an age-specific component and a cohort-specific component. The author's main results suggest that the parameter for elasticity of substitution between dif ferent age groups is similar to the U.S., while the elasticity of substitution between two education groups is less than 2.…”

India's Increasing Skill Premium: Role of Demand and Supply

“…11 The estimated wage premiums are based on regular wage/salaried workers between the ages of 23 and 57, while relative education group supplies are constructed using all type of workers between 23 and 57. 12 ' 13 A detailed description of construction of the wage sample and estimation of the wage premium is given in the data appendix. Changes in employment shares of di¤erent skill groups in regular jobs over time are presented in Table 1.…”

“…The upper cut-o¤ of age is motivated by the fact that the retirement age is 58 -62 depending on the state and nature of employer. 13 Katz and Murphy (1992) pool together men and women in their analysis of the e¤ect of aggregate relative supply on the college high school wage gap. Card and Lemieux (2001) also pool together both sexes in one of the speci…cation.…”

Introdução a ''diferencial de salários no Brasil''

“…O artigo de Ferreira (2004) analisa o impacto da oferta de trabalhadores com nível universitário no prêmio por qualificação. Utilizando técnicas de pseudo-painel, Ferreira (2004) estima os efeitos da oferta de trabalhadores com nível universitário no prêmio salarial. 3 A base de dados utilizadaé a PNAD, para os anos de 1976 -1998.…”