Estimation of Private and Social Rates of Return to Investments in Education in Latvia

Romele, Linda; Purgailis, Maris

doi:10.5755/j01.eis.0.7.5088

Cited by 6 publications

(5 citation statements)

References 11 publications

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“…This finding is similar to the result for OECD countries (7.5% on average; Hanushek et al 2015, p. 28), as well as to results for Eastern European countries (7.4%; Montenegro and Patrinos 2014, p. 11). It is also similar to the previous estimates of the Mincer coefficient for Latvia: 7.8% (Flabbi et al 2007); 6.8%-8.1%, (Romele 2014); and 6.5%-11.9%, (Montenegro and Patrinos 2014, pp. 27-28).…”

Section: Resultssupporting

confidence: 91%

“…Romele (Romele 2014) used Latvia's LFS micro data to study returns to education (using annual wages). She found that in 2011 compared with 2010 the Mincer coefficient decreased both for males (from 7.9% to 7.1%) and females (from 8.1% to 6.8%).…”

Section: Introductionmentioning

confidence: 99%

“…Different dependent variables have been used in previous papers, e.g. hourly wages (Trostel et al 2002), monthly wages (Hazans 2003;Flabbi et al 2007) and annual wages (Romele 2014), however none tested the sensitivity of the results with respect to the choice of wage variable. Despite a possible endogeneity bias, all previous papers on Latvia, to the best of our knowledge, relied solely on OLS estimates.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Returns To Education During And After The Economic Crisis: Evidence From Latvia 2006–2012

Vilerts¹,

Krasnopjorovs²,

Brekis³

2017

CER

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We employ EU-SILC micro data for Latvia to study how returns to education changed during the economic crisis of 2008–2009 and afterwards. We found that returns to education increased significantly during the crisis and decreased slightly during the subsequent economic recovery. The counter-cyclical effect was evident in nearly all population groups. After the crisis, education became more associated than before with a longer working week and a higher employment probability. Furthermore, we show that returns to education in Latvia are generally higher in the capital city and its suburbs than outside the capital city region, as well as for citizens of Latvia than for resident non-citizens and citizens of other countries, but lower for males and young people. Wage differential models reveal a relatively large wage premium for higher education and a rather small one for secondary education. Estimates obtained with instrumental variable (IV) models significantly exceed the OLS estimates.

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Section: Resultssupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Returns To Education During And After The Economic Crisis: Evidence From Latvia 2006–2012

Vilerts¹,

Krasnopjorovs²,

Brekis³

2017

CER

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“…Return to education is commonly considered in two main dimensions: social and private returns. The series of studies were dedicated to the analysis of the returns to education (Psacharopoulos and Patrinos, 2004;Jin, 2008;Filiztekin, 2011;Romele and Purgailis, 2013;Schündeln and Playforth, 2014;Romanello, 2017, Heckman, Humphries andVeramendi, 2018;Shafait et al, 2021 among others). For instance, Psacharopoulos and Patrinos (2004) came to several conclusions by analyzing the data set for the number of countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Return to education in Azerbaijan. Does gender matter?

Ismayilov¹,

Aliyev²,

Bakirova³

2022

Economics &Amp; Sociology

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The return to education and the gender wage gap are essential issues in the public policy decision-making. Return to wage from attainment of each additional educational level can be a valuable incentive to stimulate people towards higher levels of schooling. The study investigates the return from a higher level of education to hourly earnings and the gap in “returns” due to gender identity differences in the case of Azerbaijan, a resource-rich developing country. We argue that a return to hourly wage from an additional level of education is positive and moderated by gender identity. Based on a pooled cross-sectional dataset (N=4548, n_male=2617; n_female=1931,〖Mean〗_age=34.18), empirical results support the research hypothesis and display a continuous positive return from education attainment. Simultaneously, a lesser return is identified for females. The gender return gap extends further for post-bachelor degrees. The results of this research can help deliver the message of “to earn more, learn more” at the micro-level and aid public policy officials in designing educational and gender-related policies at the macro level.

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“…Latvia: Chase (2001); Hazans (2003); Flabbi et al (2008); Romele and Purgailis (2013); Montenegro and Patrinos (2014); Saksonova and Vilerts (2015); Vilerts et al (2015).…”

Section: Publication Sources Of the Meta-samplementioning

confidence: 99%

Returns to education in Central and Eastern European transition economies: The role of macroeconomic context

Wincenciak

Grotkowska

Gajderowicz

2022

Research in Comparative and International Education

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After the fall of communist regimes in Central and Eastern Europe, the returns to education were substantially growing over time. We summarise the existing literature conducting a meta-analysis of returns to education for economies of Central and Eastern Europe (CEE) and test for several mechanisms, which can explain the evolution of the returns over time and differences between countries of the region. The average estimated rate of return basing on more than 600 estimates is around 7%, but it shows variation depending on the methodology adopted, but also on countries’ characteristics. We find out a positive impact of the unemployment rate and negative impact of the enrolment rates into tertiary education. The first observation suggests we observe a countercyclicality of education returns while the latter shows that the dominance of supply of tertiary graduates reduced returns to schooling.

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Estimation of Private and Social Rates of Return to Investments in Education in Latvia

Cited by 6 publications

References 11 publications

Returns To Education During And After The Economic Crisis: Evidence From Latvia 2006–2012

Returns To Education During And After The Economic Crisis: Evidence From Latvia 2006–2012

Return to education in Azerbaijan. Does gender matter?

Returns to education in Central and Eastern European transition economies: The role of macroeconomic context

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