The wage premium from parents’ investments in the education of their children in Poland

Emilia Bedyk () and Jacek Liwiński
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Emilia Bedyk: Faculty of Economic Sciences, University of Warsaw

No 2016-14, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: The aim of this paper is to determine whether parents’ investments in the education of children in Poland have an impact on the wages of the latter in adulthood. To answer this question, an extended Mincer wage equation was estimated using OLS on the basis of data from the nationwide tracer survey of Polish graduates conducted in 2007. The results of the analysis show that parents’ investments in the education of their children have a strong, positive impact on the first earnings after the end of formal education. This relationship is observed when the investment is depicted with the education level of each parent, as well as when represented by the child’s participation in various extra-curricular activities. Furthermore, if any of the above measures of parents’ investment is included in the equation, the wage premium from formal education decreases. In particular, when both these measures of parents’ investments are included in the model, the tertiary education premium declines by about one quarter, while the secondary vocational education and secondary general education are no longer significant determinants of the graduates’ wages (as compared to basic vocational education).

Keywords: investment in human capital; formal education; extra-curricular activities; wage premium; wage equation (search for similar items in EconPapers)
JEL-codes: I26 J24 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2016
New Economics Papers: this item is included in nep-edu, nep-eur and nep-tra
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Citations: View citations in EconPapers (2)

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http://www.wne.uw.edu.pl/index.php/download_file/2732/ First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2016-14

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