Returns to Education in the Irish Youth Labour Market

Posted: 18 Nov 1999

See all articles by Alan Barrett

Alan Barrett

Economic and Social Research Institute; IZA Institute of Labor Economics

Tim Callan

Economic and Social Research Institute, Ireland; IZA Institute of Labor Economics

Brian Nolan

Economic and Social Research Institute, Ireland

Abstract

Using data from two large-scale household surveys in 1987 and 1994, we estimate wage equations which show substantial increases in returns to university education for young Irish workers over the period, despite the exceptional increase in numbers with these qualifications. Returns to non-degree third level certificates and diplomas fell in relative terms, but returns to qualifications obtained by those leaving school at about 16 years of age rose. We argue that the increased return to university education primarily reflects the generalized shift in demand towards skilled labour internationally and the open nature of the Irish labour market. However, a floor may have been placed under earnings for low-skilled youth by the increased generosity of income support available to them.

JEL Classification: J31

Suggested Citation

Barrett, Alan M. and Callan, Tim and Nolan, Brian, Returns to Education in the Irish Youth Labour Market. Available at SSRN: https://ssrn.com/abstract=169521

Alan M. Barrett (Contact Author)

Economic and Social Research Institute ( email )

4 Burlington Road
Dublin 4
Republic of Ireland
+35 31 667 1525 (Phone)
+35 31 668 6231 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tim Callan

Economic and Social Research Institute, Ireland ( email )

4 Burlington Road
Dublin 4
Republic of Ireland

IZA Institute of Labor Economics ( email )

Bonn, D-53072
Germany

Brian Nolan

Economic and Social Research Institute, Ireland ( email )

4 Burlington Road
Dublin 4

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