Education and Earnings Growth: Evidence from 11 European Countries

23 Pages Posted: 23 Oct 2000

See all articles by Giorgio Brunello

Giorgio Brunello

University of Padova - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Simona Comi

University of Milan

Abstract

We use cohort data from 11 European countries to study whether experience profiles differ by educational attainment. Previous literature does not provide a clear answer to this question, that is important to evaluate private returns to education over the working life of individuals. We find evidence that employees with tertiary education have steeper experience profiles than employees with upper secondary or compulsory education. Hence, education provides not only an initial labour market advantage but also a permanent advantage that increases with time in the labour market. We also find that differences in earnings growth by education are lower in countries with a higher level of corporatism and higher in countries which have experienced both relatively fast labour productivity growth and a relatively low educational attainment. The educational system also seems to matter, because countries with a more stratified system of secondary education have smaller differences in earnings growth by education.

Keywords: Education, earnings growth, Europe

JEL Classification: J30

Suggested Citation

Brunello, Giorgio and Comi, Simona, Education and Earnings Growth: Evidence from 11 European Countries. FEEM Working Paper No. 29.00, IZA Discussion Paper No. 140, Available at SSRN: https://ssrn.com/abstract=229279 or http://dx.doi.org/10.2139/ssrn.229279

Giorgio Brunello (Contact Author)

University of Padova - Department of Economics ( email )

via Del Santo 33
35121 Padova
Italy
+39 049 827 4223 (Phone)
+39 049 827 4221 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

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

Simona Comi

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

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