ERIC Number: ED117250
Record Type: RIE
Publication Date: 1975-Sep
Reference Count: 0
Education and the Earnings of Poverty-Area Residents.
This paper employs data from the Census Employment Survey (CES) to analyze the effect of education on the earnings of poverty-area residents. Section I compares the definitions of the poverty area used by this survey with that of the Survey of Economic Opportunity (SEO). Section II examines their implications for truncation bias. In Section III, the CES data are described and the effect of education on the earnings of poverty-area residents is estimated. It is shown that for the sample under consideration, education has a significant impact on the economic welfare of both whites and blacks despite the presence of truncation bias. It is concluded that to say that education and training are profitable investments is not to say that they are the optimal investment. The large impact of industry on employment in the regression analysis is considered to suggest that policies that alter labor demands may yield higher return to poverty-area residents than policies that emphasize education and training. (Author/AM)
Descriptors: Comparative Analysis, Economically Disadvantaged, Educational Background, Educational Benefits, Educational Demand, Educational Economics, Educational Opportunities, Educational Supply, Income, Investment, Low Income, Low Income Groups, Occupational Surveys, Poverty, Racial Differences, Social Mobility, Socioeconomic Status, Training
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Manpower Administration (DOL), Washington, DC.; Office of Economic Opportunity, Washington, DC.
Authoring Institution: Wisconsin Univ., Madison. Inst. for Research on Poverty.