Comparable Estimates of Returns to Schooling Around the World

41 Pages Posted: 20 Apr 2016

See all articles by Claudio E. Montenegro

Claudio E. Montenegro

World Bank Group; Universidad de Chile, Economics Department

Harry A. Patrinos

World Bank

Date Written: September 1, 2014

Abstract

Rates of return to investments in schooling have been estimated since the late 1950s. In the 60-plus year history of such estimates, there have been several attempts to synthesize the empirical results to ascertain patterns. This paper presents comparable estimates, as well as a database, that use the same specification, estimation procedure, and similar data for 139 economies and 819 harmonized household surveys. This effort to compile comparable estimates holds constant the definition of the dependent variable, the set of control variables, the sample definition, and the estimation method for all surveys in the sample. The results of this study show that (1) the returns to schooling are more concentrated around their respective means than previously thought; (2) the basic Mincerian model used is more stable than may have been expected; (3) the returns to schooling are higher for women than for men; (4) returns to schooling and labor market experience are strongly and positively associated; (5) there isa decreasing pattern over time; and (6) the returns to tertiary education are highest.

Keywords: Economics of Education, Educational Sciences, Education For All, Educational Populations, Education for Development (superceded)

Suggested Citation

Montenegro, Claudio E. and Patrinos, Harry Anthony, Comparable Estimates of Returns to Schooling Around the World (September 1, 2014). World Bank Policy Research Working Paper No. 7020. Available at SSRN: https://ssrn.com/abstract=2491933

Claudio E. Montenegro (Contact Author)

World Bank Group ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Universidad de Chile, Economics Department

Diagonal Paraguay 257
Torre 26, Of. 1801
Santiago
Chile

Harry Anthony Patrinos

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

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