Does Formal Education for Older Workers Increase Earnings? — Evidence Based on Rich Data and Long‐Term Follow‐Up

27 Pages Posted: 30 Apr 2014

See all articles by Anders Stenberg

Anders Stenberg

Stockholm University - Swedish Institute for Social Research (SOFI)

Xavier de Luna

University of Umea - Department of Economics

Date Written: June 2014

Abstract

Governments in Europe, Canada and the USA have expressed an ambition to stimulate education of older. In this paper, we analyse if there are effects on annual earnings of formal education for participants aged 42–55 at the time of enrolment in 1994–95. The analysis explores longitudinal population register data stretching from 1982 to 2007. The method used is difference‐in‐differences propensity score matching based on a rich set of covariates, including indicators of health and labor market marginalization. Our findings underline the importance of long follow up periods and imply positive effects for women, especially so for women with children, and no significant average earnings effects for men. These results differ from earlier studies but are stable to several alternative assumptions regarding unobservable characteristics. Data further indicate that the gender gap in our estimates may stem from differences in underlying reasons for enrolment.

JEL Classification: C21, H52, H75, I28

Suggested Citation

Stenberg, Anders and de Luna, Xavier, Does Formal Education for Older Workers Increase Earnings? — Evidence Based on Rich Data and Long‐Term Follow‐Up (June 2014). LABOUR, Vol. 28, Issue 2, pp. 163-189, 2014, Available at SSRN: https://ssrn.com/abstract=2431044 or http://dx.doi.org/10.1111/labr.12030

Anders Stenberg (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Xavier De Luna

University of Umea - Department of Economics ( email )

Umeå University
Umea, SE - 90187
Sweden

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