The Wage Returns to Education Over the Life-Cycle: Heterogeneity and the Role of Experience

43 Pages Posted: 11 Jan 2016

See all articles by Franz Buscha

Franz Buscha

University of Westminster

Matthew Dickson

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Abstract

This paper re-examines the wage returns to the 1972 Raising of the School Leaving Age (RoSLA) in England and Wales using a high-quality administrative panel dataset covering the relevant cohorts for almost 40 years of their labour market careers. With best practice regression discontinuity methods we find at best a zero return to the additional education for men. However, we contend that regression discontinuity methods in this context will give unreliable estimates of the return. Using the panel data to correct for this we find a local average treatment effect of 7% over the lifetime for this additional year of education.

Keywords: returns to education, life-cycle, earnings, experience

JEL Classification: I26, I28, J24, J31

Suggested Citation

Buscha, Franz and Dickson, Matthew, The Wage Returns to Education Over the Life-Cycle: Heterogeneity and the Role of Experience. IZA Discussion Paper No. 9596, Available at SSRN: https://ssrn.com/abstract=2713017

Franz Buscha (Contact Author)

University of Westminster ( email )

309 Regent Street
London, W1R 8AL
United Kingdom

Matthew Dickson

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
29
Abstract Views
247
PlumX Metrics