Paper #610
- Title:
- How different are returns to education? Evidence from German school choices
- Author:
- Dörte Dömeland
- Date:
- January 2002
- Abstract:
- This study presents estimates of returns to post-secondary education and wage differentials among graduates fromdifferent secondary schools in Germany. I use an empirical model that captures the basic features of the German education system. It controls for selection into post-secondary education and treats latter as endogenous in the wage equation. My results show that OLS estimates are severely biased. The direction of the bias depends on the secondary school type. Annual returns to post-secondary education differ significantly: they are eight times higher for graduates from the highest secondary school than for graduates from the lowest secondary school.
- Keywords:
- Education, endogenous switching, wage differentials
- JEL codes:
- I20, J24, C35
- Area of Research:
- Labour, Public, Development and Health Economics
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