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ERIC Number: ED504066
Record Type: Non-Journal
Publication Date: 2007-Dec-20
Pages: 64
Abstractor: As Provided
Reference Count: N/A
ISBN: N/A
ISSN: N/A
The Wage Premium on Tertiary Education: New Estimates for 21 OECD Countries Countries. OECD Economics Department Working Papers, No. 589
Strauss, Hubert; de la Maisonneuve, Christine
OECD Publishing (NJ1)
This paper presents cross-section estimates of gross hourly wage premia on tertiary education. They are based on a unified framework for 21 OECD countries from the 1990s to the early 2000s and use international household surveys to maximise international comparability. The results of the "augmented" Mincerian wage equations point to an average hourly gross wage premium on completed tertiary education of 55% in 2001 (country-gender average), translating into a premium of close to 11% per annum of tertiary education. Wage premia display little variation over time but huge cross-country variation: at 6% they are lowest in Greece and Spain (men and women) as well as in Austria and Italy (women) while reaching 14%-18% in Hungary, Portugal, and in most Anglo-Saxon countries. Given that the wage premium is the single most important driver of private returns to education, the results presented here have potentially important implications for policies that aim at increasing investment in human capital. Appended are: (1) Correlation pattern among right-hand variables; and (2) Assessment of the potential employement selection bias in the Mincerian Wage Regressions. (Contains 17 tables and 13 figures.)
OECD Publishing. 2, rue Andre Pascal, F-75775 Paris Cedex 16, France. Tel: +33-145-24-8200; Fax: +33-145-24-8500; Web site: http://www.oecd.org/publications http://www.sourceoecd.org
Publication Type: Reports - Descriptive
Education Level: Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Organisation for Economic Cooperation and Development
Identifiers - Location: Austria; Greece; Hungary; Italy; Portugal; Spain