Paper #610

Título:

How different are returns to education? Evidence from German school choices

Autor:

Dörte Dömeland

Fecha:

Enero 2002

Resumen:

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.

Palabras clave:

Education, endogenous switching, wage differentials

Códigos JEL:

I20, J24, C35

Área de investigación:

Economía Laboral, Pública, de Desarrollo y de la Salud

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