Dispersion in the economic return to schooling

Colm Harmon, Vincent (Vincent Peter) Hogan and Ian Walker ()

Open Access publications from School of Economics, University College Dublin

Abstract: We extend the standard human capital earnings function to include dispersion in the return to schooling by treating the return as a random coefficient. If the rapid expansion in participation in higher education has been brought about by dipping further into the ability distribution, we should observe a rise in the variance of returns. Alternatively, if the expansion has come about through relaxing credit constraints then we might expect to see an increase in both the mean and variance of returns. Our estimates suggest that the variance in returns has not risen over time.

Keywords: Education--Economic aspects; Wages--Effect of education on; Labor supply--Effect of education on (search for similar items in EconPapers)
JEL-codes: C31 J24 J31 (search for similar items in EconPapers)
Date: 2002-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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http://hdl.handle.net/10197/1101 First version, 2002 (application/pdf)

Related works:
Journal Article: Dispersion in the economic return to schooling (2003)
Working Paper: Dispersion in the Economic Return to Schooling (2001)
Working Paper: Dispersion in the economic return to schooling (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:oapubs:10197/1101

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