A Test of the Sorting Model of Education in Australia

Paul Miller, Charles Mulvey and Nick Martin
Additional contact information
Charles Mulvey: UWA Business School, The University of Western Australia
Nick Martin: Queensland Institute of Medical Research

No 04-12, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: In this paper we test the hypothesis advanced by Weiss (1995) that under sorting models the return to schooling across identical twins would decline over time compared to the return for the population as a whole. The analyses undertaken on a relatively large sample of Australian twins are consistent with this proposition. The pure effect of education on earnings declines with time in the labour market. This presumably occurs because with time in the labour market firms learn more about the workers and so can set pay assigning more weight to the information they acquire.

Pages: 23 pages
Date: 2004
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Citations: View citations in EconPapers (8)

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