Education Expansion and Decline in Tertiary Premium in Brazil: 1995-2013

Yang Wang ()
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Yang Wang: Department of Economics, Tulane University

No 1525, Working Papers from Tulane University, Department of Economics

Abstract: According to the Brazil Naional Household Survey 1995-2013 data, the decline in the relative wage of tertiary-educated workers coincides with an education expansion that shifted the relative supply and might also change the quality composition of the tertiary group. This paper tries to decompose the change in the tertiary premium in Brazil during the 1995-2013 period into the "price effect", which refers to the change in educational premium caused by the shifts in suppl and demand, and the "composition effect", which refers to whether there was any significant decline in the average quality of tertiary-educated workers of the recent cohorts and how the changes in cohort quality had impacted the relative wage of the tertiary group. The results demonstrate that the growth in the relative supply had a significant negative impact on the decline of tertiary premium. The results also show that the average quality of the tertiary-educated workers of the recent cohorts declined, which also accounts for a substantial proportion of the decline in the relative wage.

Keywords: earning inequality; education expansion; decline in tertiary premium; skill supply and demand; average cohort quality (search for similar items in EconPapers)
JEL-codes: I24 I26 J24 J31 O15 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-edu, nep-lam and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:tul:wpaper:1525

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