Estimates of the causal effects of education on earnings over the lifecycle with cohort effects and endogenous education

Migali, Giuseppe and Walker, Ian (2018) Estimates of the causal effects of education on earnings over the lifecycle with cohort effects and endogenous education. CESifo Economic Studies, 64 (3). pp. 516-544. ISSN 1610-241X

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Abstract

We estimate the wage premia associated with educational attainments focusing on the lifecycle pattern of earnings. We employ a model where educational attainment is discrete and ordered and log wages are determined by a simple function of work experience for each level of attainment. We distinguish between lifecycle and cohort effects by exploiting the fact that we have a short panel. We find that age earnings profiles lose the traditional bell shape and become flat when we allow for cohort differences. Females still have higher college premia compared to males. However, there are clear earnings inequalities between cohorts with smaller college premia for younger compared to older cohorts, for both males and females.

Item Type:

Journal Article

Journal or Publication Title:

CESifo Economic Studies

Additional Information:

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in CESifo Economic Studies following peer review. The definitive publisher-authenticated version Giuseppe Migali, Ian Walker; Estimates of the Causal Effects of Education on Earnings over the Life Cycle with Cohort Effects and Endogenous Education, CESifo Economic Studies, Volume 64, Issue 3, 1 September 2018, Pages 516–544, https://doi.org/10.1093/cesifo/ifx020 is available online at: https://academic.oup.com/cesifo/article/64/3/516/4773953

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2000/2002

Subjects:

?? returns to educationearnings inequalitylifecycle effectscohort effectsendogeneityeconomics and econometricsgeography, planning and development ??

Departments:

Lancaster University Management School > Economics

ID Code:

88657

Deposited By:

ep_importer_pure

Deposited On:

17 Nov 2017 12:57

Refereed?:

Yes

Published?:

Published

Last Modified:

13 Oct 2024 00:10

URI:

https://eprints.lancs.ac.uk/id/eprint/88657