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The long-lasting effects of family background: a European cross-country comparison

This paper investigates how and to what extent the association between family socio-economic status (SES) during childhood and old age health, income and cognition varies across 11 European countries. It uses the Survey on Health, Aging and Retirement in Europe (SHARE) and SHARELIFE, which collects retrospective information on respondents' family backgrounds during their childhood. [The author] also analyzes which factors lead to intergenerational persistence of human capital by accounting for childhood health and school performance, education and labor market outcomes. The results show a strong relationship between family SES during childhood and old age outcomes and a large cross-country heterogeneity. Education appears as the main channel for this gradient and explains most of the estimated cross-country heterogeneity. Moreover, [the author] shows evidence of a strong correlation between income inequality and [the author's] estimates of intergenerational persistence of human capital.

This paper investigates how and to what extent the association between family socio-economic status (SES) during childhood ...  Show Full Abstract  

Authors: Mazzonna, Fabrizio
Date: 2014
Geographic subjects: Europe
Journal title: Economics of education review
Resource type: Article
Subjects: Skills and knowledge; Culture and society; Equity;

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Impact of household factors on youth's school decisions in Thailand

This paper uses Fairlie's techniques to estimate differences in school enrollment between municipal and non-municipal areas. [The author] found that group differences in all explanatory variables explain approximately 70 per cent of the gap. Education level of household head is the largest significant factor accounting for a gap in males' school enrollment whereas the largest factor explaining the municipal/non-municipal gap in the school enrollment rate of females 15-17 years of age is income. Based on empirical results, some educational policies are suggested to increase school enrollment of Thai youths. Demand-side financing policies such as target vouchers should be used for the chance of schooling especially for those facing financial difficulty. Non-formal education and distance learning could be used to provide an alternative and more appropriate way of learning for married youths. Establishment of a child care center in a community can reduce workload of youths in taking care of young family members and allow them to participate in school activity.

This paper uses Fairlie's techniques to estimate differences in school enrollment between municipal and non-municipal areas. ...  Show Full Abstract  

Authors: Tharmmapornphilas, Rubkwan
Date: 2013
Geographic subjects: Thailand; Asia
Journal title: Economics of education review
Resource type: Article
Subjects: Youth; Employment; Teaching and learning;

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Minimum wages and skill acquisition: another look at schooling effects

This article re-examines evidence on the effects of minimum wages on schooling in an attempt to reconcile some of the contradictory findings from more recent research. Evidence from the US Current Population Survey (CPS) data from the late 1970s and 1980s is examined. This period of time was characterised by a number of state-level minimum wage increases and several research studies on the effects of minimum wages. Research findings from the 1990s are also examined. The authors find that evidence consistently points to negative effects of minimum wages on school enrolment, augmenting the findings of a number of recent studies, as well as some earlier ones, and countering claims that appear to overturn some of this evidence. The authors conclude that the minimum wage reduces the proportion of young people in school and that increases in the minimum wage result in employers recruiting enrolled youth and a significant increase in the proportion of non-enrolled youth without jobs. Along with research on the effects of minimum wages on training, the evidence suggests that minimum wages reduce skill acquisition among young people. It is suggested that this area is far less researched than the employment effects of minimum wages and that, now a causal effect of minimum wages on schooling has been established, further research is needed to analyse why this effect arises and how it may differ across families and other dimensions.

This article re-examines evidence on the effects of minimum wages on schooling in an attempt to reconcile some of the ...  Show Full Abstract  

Authors: Neumark, David; Wascher, William
Date: 2003
Geographic subjects: North America; United States
Journal title: Economics of education review
Resource type: Article
Subjects: Participation; Youth; Income;

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The cost of specialized human capital

Gary Becker, in his pioneering work ‘Human capital’, explains that the cost of education is the sum of direct cost plus net foregone earnings - the difference between what could have been earned without attending school and what is earned while in school. However, the author suggests that individuals invest in specialised and not generic human capital. For some individuals, the opportunity cost of a specialised education is what could have been earned after accumulating an alternative specialised education. The paper demonstrates that if some individuals belong to a non-competing group, then direct schooling cost plus net foregone earnings will tend to understate the cost of education for others. The notion of a non-competing group requires that some may not be able to enter certain occupations. The human capital approach considers supply of and demand for human capital by individuals, rather than the supply of and demand for individuals with specialised human capital.

Gary Becker, in his pioneering work ‘Human capital’, explains that the cost of education is the sum of direct cost plus net ...  Show Full Abstract  

Authors: Perri, T. J.
Date: 2003
Journal title: Economics of education review
Resource type: Article
Subjects: Income; Finance; Skills and knowledge;

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A meta-analysis of the effect of education on social capital

To assess the empirical estimates of the effect of education on social trust and social participation - the basic dimensions of individual social capital - a meta-analysis is applied, synthesizing 154 evaluations on social trust, and 286 evaluations on social participation. The publication bias problem is given special emphasis in the meta-analysis. Our statistical synthesis confirms that education is a strong and robust correlate of individual social capital. The meta-analysis provides support for the existence of a relative effect of education on social participation, and of a reciprocity mechanism between the dimensions of social capital. The analysis also suggests that the erosion of social participation during the past decades has coincided with a decrease of the marginal return to education on social capital. Finally, we find differences in the return to education between genders, between the US and other nations, and variations for different education attainments.

To assess the empirical estimates of the effect of education on social trust and social participation - the basic dimensions ...  Show Full Abstract  

Authors: Huang, Jian; Brink, Henriette Maassen van den; Groot, Wim
Date: 2009
Geographic subjects: North America; United States
Journal title: Economics of education review
Resource type: Article
Subjects: Research; Outcomes; Participation;

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International education quality

Education is linked with economic productivity and growth in personal income. But what is it about education which creates this linkage? Have nations with high rates of enrollment achieved the maximum educational productivity? This note will argue that the impact of education is derived primarily from its quality, but that there are multiple indicators of educational quality which do not necessarily operate in uniform fashion. The note will describe the distribution of educational quality around the world and point out that even in nations with full enrollment and high educational expenditure the impact of investments varies considerably. The note will review what we know about educational quality from the evidence of the last two decades. It will address some of the current debates surrounding investment in educational quality and it will introduce several issues which will drive these debates in the future.

Education is linked with economic productivity and growth in personal income. But what is it about education which creates ...  Show Full Abstract  

Authors: Heyneman, Stephen P.
Date: 2004
Journal title: Economics of education review
Resource type: Article
Subjects: Quality; Income; Outcomes;

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Immigrant overeducation: evidence from recent arrivals to Australia

Australian immigration policy, in common with the US and Canada, has increased the emphasis on skill-based selection criteria. A key premise of this policy is that skilled immigrants are more employable and can add to the productive capacity of the economy. However, this effect will be diminished if immigrants are working in occupations that fail to utilise their skills. We examine the extent of overeducation for recently arrived immigrants to Australia. We find that they are more likely to be overeducated than the native population, even if they enter on skill assessed visas. Overeducation is greater for immigrants from non-English speaking backgrounds (NESB) and generates lower returns to education. Tighter restrictions to welfare support on entry raised employment levels but increased overeducation. This will serve to reduce the potential productivity gains from skill biased immigration policies.

Australian immigration policy, in common with the US and Canada, has increased the emphasis on skill-based selection ...  Show Full Abstract  

Authors: Green, Colin; Kler, Parvinder; Leeves, Gareth
Date: 2007
Geographic subjects: Oceania; Australia
Journal title: Economics of education review
Resource type: Article
Subjects: Qualifications; Language; Skills and knowledge;

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Unequal education, poverty and low growth: a theoretical framework for rural education of China

This paper constructs an intertemporal substitution educational model based on endogenous growth theory and examines the rural education, farmer income and rural economic growth problems in China. It shows that the households originally with the same economic endowment but different education endowment take different growth routes, the income difference between low- and high-income families can be enlarged as they take different educational growth routes, and the low-income family has the chance to get into the ‘poverty trap’. In the mean time, urban and rural, developed and underdeveloped rural areas, as they take the different education growth routes the difference of economic growth tend to be expanded for the flow of high-quality labor and different industrialization, and they also have the risk of ‘poverty trap’. The key to solve this problem is the active public policies that promote the equal education, rational income and equilibrium development.

This paper constructs an intertemporal substitution educational model based on endogenous growth theory and examines the ...  Show Full Abstract  

Authors: Wu, Fangwei; Zhang, Deyuan; Zhang, Jinghua
Date: 2008
Geographic subjects: Asia; China
Journal title: Economics of education review
Resource type: Article
Subjects: Finance; Equity; Skills and knowledge;

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What level of education matters most for growth?: evidence from Portugal

We decompose annual average years of schooling series for Portugal into different schooling levels series. By estimating a number of vector autoregressions, we provide measures of aggregate and disaggregate economic growth impacts of different education levels. Increasing education at all levels except tertiary have a positive and significant effect on growth. Investment in education does not significantly crowd out physical investment and average years of schooling semi-elasticities have comparable magnitude across primary and secondary levels.

We decompose annual average years of schooling series for Portugal into different schooling levels series. By estimating a ...  Show Full Abstract  

Authors: Pereira, Joao; St. Aubyn, Miguel
Date: 2009
Geographic subjects: Europe; Portugal
Journal title: Economics of education review
Resource type: Article
Subjects: Labour market; Outcomes; Research;

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Non-market effects of education on crime: evidence from Italian regions

This paper studies the non-market effects of education on crime using a panel dataset for the 20 Italian regions over the period 1980-1995. Our empirical results suggest that education reduces crime over and above its effect through labour market opportunities (employment rate and wage rate). Because of the absence of a credible instrumental variable for education for Italy, our empirical strategy is to include in our econometric specification region fixed effect, year fixed effects and region-specific time trends together with an extensive set of socioeconomic and deterrence variables. Our results are robust to model specification, changes in the typology of crimes and finally, to alternative definitions of education.

This paper studies the non-market effects of education on crime using a panel dataset for the 20 Italian regions over the ...  Show Full Abstract  

Authors: Buonanno, Paolo; Leonida, Leone
Date: 2009
Geographic subjects: Europe; Italy
Journal title: Economics of education review
Resource type: Article
Subjects: Employment; Labour market; Outcomes;

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