Is There a Return - Risk Link in Education?

10 Pages Posted: 30 Jul 2001

See all articles by Pedro Telhado Pereira

Pedro Telhado Pereira

Universidade da Madeira - Gestao e Economica; IZA Institute of Labor Economics

Pedro S. Martins

Queen Mary College - School of Business and Management; IZA Institute of Labor Economics; New University of Lisbon

Date Written: July 2001

Abstract

Risk averse investors have to be compensated in higher expected returns when facing investments with higher risk. Education is an important investment therefore we use the results for 16 countries to test the positive relationship between return to education and the risk involved in this investment. It seems that most of the countries fit the pattern well: higher risk; higher return.

Keywords: Returns to Education, Risk, Quantile Regression

JEL Classification: C29, I21, J24

Suggested Citation

Telhado Pereira, Pedro and Martins, Pedro S., Is There a Return - Risk Link in Education? (July 2001). IZA Discussion Paper No. 321. Available at SSRN: https://ssrn.com/abstract=276510

Pedro Telhado Pereira (Contact Author)

Universidade da Madeira - Gestao e Economica ( email )

Campus Universitario da Penteada
9000-390 Funchal
Portugal
351 291 70 50 40 (Phone)
351 291 70 50 43 (Fax)

HOME PAGE: http://www.uma.pt/Privado/ppereira

IZA Institute of Labor Economics

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

Pedro S. Martins

Queen Mary College - School of Business and Management ( email )

Mile End Road
London, E1 4NS
United Kingdom

HOME PAGE: http://webspace.qmul.ac.uk/pmartins

IZA Institute of Labor Economics

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

New University of Lisbon

Lisbon, 1099-085
Portugal

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