Returns to investment in education: A global update

Psacharopoulos, George

doi:10.1016/0305-750x(94)90007-8

Cited by 2,199 publications

(1,366 citation statements)

References 86 publications

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“…Since the estimated returns to tenure and previous labor market experience also fall, the returns to human capital are significantly affected in the expected direction by the addition of information on parental education and region of birth. We find that the marginal returns to education in the full sample are equal to 5.3% per year, much less than 10.4%, the value reported for Thailand by Psacharopoulos [1994]. Only technicians and engineers in our sample get close to this number, with a marginal return equal to 15%.…”

Section: E 0lqfhuldq Zdjh Uhjuhvvlrqvcontrasting

confidence: 65%

Are the More Educated Receiving More Training? Evidence from Thailand

Ariga

Brunello

2002

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper investigates the relationship between education and training provided by the firm, both on the job and off the job, using a unique dataset based on a survey of Thai employees conducted in the summer of 2001. We find a significant and negative relationship between educational attainment and on the job training and no significant relationship between education and off the job training. We also find that education and training are technical complements, especially in the case of off the job training. These findings are consistent with more educated individuals having higher marginal costs of training than less educated workers, especially where on the job training is concerned. Either the better educated have lower learning skills in jobs requiring on the job training or they have higher opportunity costs of training, or both. Terms of use: Documents in EconStor mayKeywords: Training, education, wages ,QWURGXFWLRQThe economic literature emphasizes strongly the importance of schooling in increasing productivity, improving health and nutrition and reducing fertility (see Behrman [1987]). Schooling can affect productivity both directly, by improving basic skills, and indirectly, by affecting training. Do the better educated receive by firms more or less training? A positive association between education and training has two implications. If the more educated also receive more training, both on the job and off the job, an increase in the average level of educational attainment leads to even higher human capital and productivity. On the other hand, initial individual differences in the level of human capital are bound to widen in the labor market.The economic literature does not provide a clear-cut answer to the question above. A strand of literature going back to the mid 1970s argues in a rather informal way that more education leads to more training. According to Thurow [1975] and Rosen [1976], education improves learning skills, thereby reducing (marginal) training costs. Since optimal investment in training obtains when marginal costs are equal to marginal benefits, a reduction in marginal costs given marginal benefits increases investment. A more recent strand does not fully support this view. According to Sicherman [1990] and Hersch [1991], over -educated individuals receive less on the job training than individuals with less education. This happens because the over -educated are less willing, or less able, to learn, which increases (marginal) c...

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Section: E 0lqfhuldq Zdjh Uhjuhvvlrqvcontrasting

confidence: 65%

Are the More Educated Receiving More Training? Evidence from Thailand

Ariga

Brunello

2002

SSRN Journal

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“…percent (Psacharopoulos, 1994) with our estimations that an individual hit in early life loses 0.5 years of education, policymakers might consider in planning a cost-effective policy that being affected in early childhood by this kind of shock implies a loss in the range of 3.9-5.5 percent of future wages in adulthood.…”

Section: Resultsmentioning

confidence: 51%

Quake'n and Shake'n... Forever! Long-Run Effects of Natural Disasters: A Case Study on the 1970 Ancash Earthquake

Miller

Caruso

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. Terms of use: Documents inThe unauthorized commercial use of Bank documents is prohibited and may be punishable under the Bank's policies and/or applicable laws.Copyright © Inter-American Development Bank. This working paper may be reproduced for any non-commercial purpose. It may also be reproduced in any academic journal indexed by the American Economic Association's EconLit, with previous consent by the Inter-American Development Bank (IDB), provided that the IDB is credited and that the author(s) receive no income from the publication.Cataloging-in-Publication data provided by the Inter-American Development Bank Felipe Herrera Library Caruso, Germán .Quake'n and shake'n… forever! long-run effects of natural disasters: a case study on the 1970 This study estimates the effects of the 1970 Ancash earthquake on human capital accumulation on the affected and subsequent generation, 37 years after the shock, using the Peruvian censuses of 1993 and 2007. The main finding is that males affected by the earthquake in utero completed on average 0.5 years less schooling while females affected by the earthquake completed 0.8 years less schooling. Surprisingly, those whose mothers were affected at birth by the earthquake have 0.4 less years of education, while those whose fathers were affected by the earthquake at birth have no effects on their education. The evaluation of other outcomes also suggests that the level of welfare of the affected individuals has been negatively impacted in the long run. The present investigation supports previous literature on shocks in early childhood, providing evidence of the existence of intergenerational transmission of shocks.JEL classifications: D31, I32, C49

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“…medidas relativamente mais estáveis, notamos que os rendimentos tendem a ser uma função mais ín-grime e côncava quanto maior o nível educacional. Este ponto está de acordo com a literatura Becker (1975), Willis (1986), Psacharopoulos (1994), em que os indivíduos tendem não apenas a ganhar mais com o maior nível educacional, mas apresentam maiores taxas de crescimento, as quais decaem mais rapidamente ao longo da vida de trabalho, para maiores graus de ensino. Uma investigação inicial através destes gráficos aponta contra o paralelismo, dado que alguns perfis de salário acabam se aproximando.…”

Section: Resultsunclassified

“…6 Um teste F executado sobre estes termos não lineares rejeita fortemente o modelo linear. Psacharopoulos e Patrinos (2004), Psacharopoulos (1994Psacharopoulos ( , 1985 revisa as estimativas da taxa de retorno baseadas no modelo minceriano, para diversos países, obtendo prêmios por educação maiores para América Latina/Caribe e África Subsaariana -países de baixa e média renda -que estão acima do retorno médio mundial. Além disso, nos últimos doze anos, os retornos mincerianos médios mundiais tem decaído 0.6%, enquanto o nível médio de escolarização aumentou.…”

Section: Evidência Internacional -Mincerunclassified

“…Psacharopoulos (1994) destaca que o método da TIR é o mais apropriado, mas afirma que esta metodologia tem sido preterida em relação à Mincer II devido à falta de uma base com um número grande de observações em uma dada célula do nível educacional-idade para construir perfis de rendimentos-idade bem comportados (sem cruzamento e côncavo). Mas esse argumento têm se tornado fraco, dada a gama de bases existente atualmente.…”

Section: Evidência Internacional -Tirunclassified

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Testando as hipóteses do modelo de mincer para o Brasil

Moura¹

2008

Rev. Bras. Econ.

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ConteúdoVárias estimativas de taxas de retorno para educação têm sido produzidas, baseadas no modelo de Mincer. Mas algumas das hipóteses (linearidade e separabilidade), para que o coeficiente escolar ("minceriano") seja interpretado como taxa de retorno, são testadas e rejeitadas. Ao relaxar tais hipóteses, estimamos as taxas internas de retorno Becker (1975) e obtemos vieses que chegaram a 14 pontos percentuais em relação ao coeficiente "minceriano". Assim, a magnitude destes retornos é bem menor do que os estudos baseados no modelo de Mincer. Nas estimações incorporamos o desenho amostral da PNAD e corrigimos o problema do viés de seleção amostral. Becker (1975) and we get biases that arrive to 14 percentile points in relation to the "mincer coefficient". Thus, the magnitude of these returns is much lower than the papers based on Mincer's model. In the estimates we incorporate the sample design of PNAD and correct the problem of bias of sample selection. * Agradeço ao Carlos Eugênio da Costa, da EPGE/FGV, pelos diversos comentários e orientação na elaboração deste artigo; a Petra Todd, da University of Pennsylvania, pelos códigos em R cedidos que foram importantes na realização de alguns testes neste artigo; ao Luis Henrique Braido, Luis Renato Lima, da EPGE/FGV, e a todos os participantes do Seminário de Almoço da EPGE por suas diversas sugestões e críticas; ao Breno Néri, doutorando da New York University, por seu auxílio em uma rotina; a Elaine Toldo Pazello, da FEA-RP/USP, por suas sugestões; ao Maurício Lila, Djalma Pessoa e Pedro Nascimento Silva, do IBGE, por seus auxílios em relação à PNAD e Censo; agradeço a todos os participantes do XXVIII Encontro Brasileiro de Econometria (SBE), quando da apresentação de uma versão preliminar deste artigo; e por fim agradeço os comentários de um parecerista anônimo. Os erros remanescentes são de inteira responsabilidade do autor.

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Returns to investment in education: A global update

Cited by 2,199 publications

References 86 publications

Are the More Educated Receiving More Training? Evidence from Thailand

Are the More Educated Receiving More Training? Evidence from Thailand

Quake'n and Shake'n... Forever! Long-Run Effects of Natural Disasters: A Case Study on the 1970 Ancash Earthquake

Testando as hipóteses do modelo de mincer para o Brasil

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