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Returns to education in transition and advanced European countries: The role of an expansion of higher education

In: Investigaciones de Economía de la Educación 10

Author

Listed:
  • Martina Mysikova

    (National Training Fund)

  • Jiri Vecernik

    (Institute of Sociology, Czech Academy of Sciences)

Abstract
Cross-national comparisons on returns to education were so far based on secondary evidence from national studies. Unlike in Western European countries, in Eastern countries the data on the levels and development of returns since 1990 shows a uniform upward trend in returns to higher education. Since 2004, the European Union Statistics on Income and Living Conditions (EU-SILC) provides a unique comparative database. In 2009, midway through the period observed by EU-SILC, came the breaking point when rising returns to tertiary education started to decrease, albeit slightly. In general, differences over time are not as big as differences between individual countries. Although converging, the returns to tertiary education in Eastern and Western countries remain still far apart, considerably higher in Eastern countries. Panel analysis with economic, demographical and institutional characteristics of countries shows also substantial differences in factors of returns to tertiary education in Eastern and Western Europe. The assumed negative relationship between the share of tertiary educated workers in the working age population and the returns to tertiary education was confirmed only in Western Europe. Job vacancy rate has a significant negative impact on returns to tertiary education only in Eastern Europe. It seems that in the West, the labour market reacts on labour supply, while labour demand plays more important role in the East.

Suggested Citation

  • Martina Mysikova & Jiri Vecernik, 2015. "Returns to education in transition and advanced European countries: The role of an expansion of higher education," Investigaciones de Economía de la Educación volume 10, in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 44, pages 865-886, Asociación de Economía de la Educación.
    • Handle: RePEc:aec:ieed10:10-44
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    File URL: http://repec.economicsofeducation.com/2015madrid/10-44.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    returns to education; tertiary education; Europe; transition countries;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • P29 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Other

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