Full-time Schooling, Part-time Schooling, and Wages: Returns and Risks in Portugal

23 Pages Posted: 13 Mar 2007

See all articles by Corrado Andini

Corrado Andini

IZA Institute of Labor Economics

Pedro Telhado Pereira

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

Date Written: March 2007

Abstract

The standard wage equation proposed by Mincer (1974) assumes that individuals start working after leaving school, which is not the actual case for many people. Using longitudinal data on Portuguese male workers, former working students, we estimate the total impact of an additional year of full-time schooling on both the mean and the shape of the conditional wage distribution. The same exercise is also performed for part-time schooling. We find that the conditional average earnings return to one year of part-time schooling is much lower than the analogous return to one year of full-time schooling. However, the conditional wage risk implied by one year of part-time schooling is much lower than the analogous risk implied by one year of full-time schooling, thus complicating policy considerations. Nevertheless, we find evidence that the full-time schooling strategy dominates, in conditional wage distribution, the part-time schooling strategy, meaning that the choice of working while enrolled in school does not ultimately pay.

Keywords: working students, return to schooling, wage level, panel data

JEL Classification: I21, J31, C23

Suggested Citation

Andini, Corrado and Telhado Pereira, Pedro, Full-time Schooling, Part-time Schooling, and Wages: Returns and Risks in Portugal (March 2007). IZA Discussion Paper No. 2651. Available at SSRN: https://ssrn.com/abstract=970491

Corrado Andini (Contact Author)

IZA Institute of Labor Economics

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

Pedro Telhado Pereira

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

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