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Returns to education and to experience within the EU: are there differences between wage earners and the self-employed?

Inmaculada García Mainar () and Victor Montuenga ()
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Inmaculada García Mainar: Department of Económic Analysis. Facultad de Ciencias Económicas y Empresariales. University of Zaragoza.

Authors registered in the RePEc Author Service: Inmaculada García-Mainar ()

Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza

Abstract: This paper investigates the returns to education and to experience within the 15 pre-enlargement EU countries, distinguishing between wage earners and the self-employed. These returns are estimated by using a comparable data set coming from the European Community Household Panel during the period 1994-2000. To correct for the ability bias and recover the education coefficients, an Efficient Generalized Instrumental Variable technique is applied. Although the results differ across countries, two common features can be observed. First, the earnings-experience profiles indicate certain traits of competitiveness in the labor markets and, secondly, the returns to education show that signaling plays a relevant role in the earnings of workers.

Keywords: Returns to education; wage earners; self-employed; panel data; European Union (search for similar items in EconPapers)
JEL-codes: C13 C23 I21 J31 (search for similar items in EconPapers)
Date: 2004-08
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Persistent link: http://EconPapers.repec.org/RePEc:zar:wpaper:dt2004-08

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