Is There a Return - Risk Link in Education?

Pereira, Pedro Telhado; Martins, Pedro S.

doi:10.2139/ssrn.276510

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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

IZA Institute of Labor Economics; Global Labor Organization (GLO); Nova School of Business and Economics

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: Suggested Citation

Telhado Pereira, Pedro and Martins, Pedro S., Is There a Return - Risk Link in Education? (July 2001). Available at SSRN: https://ssrn.com/abstract=276510 or http://dx.doi.org/10.2139/ssrn.276510