Returns to education in Spain: Some evidence on the endogeneity of schooling

Abstract

In this article, rates of return to education for Spanish male employees are calculated and compared using different methods. We derive rates of return from the estimation of three alternative models of human capital. The rates of return obtained by each of these models are different when they are calculated by least squares. Nevertheless, when the endogeneity of education is considered, the rates of return obtained from each of these models are approximately the same, reaching a value close to 9%. In addition, we compute internal rates of return on investments in education. We find that, on average, social returns are about two points lower than private ones.

Wage differences among Ph.D.s by area of knowledge: are science areas better paid than humanities and social ones? The Spanish case

“…For the Spanish case, there is a large literature devoted to the returns to education Hevia 2006, 2008;Arrazola et al 2003;Barceinas et al 2002;Budría and Moro 2008;Caparrós et al 2001;De la Rica and Ugidos 1995;García and Montuenga 2005;Marcenaro and Navarro 2005). However, while higher education has been analysed in Spain (Mora and Ayala 2000;Mora et al 2006;Mora, García, and García 2000;Sanchez Ferrer 1996), the returns to higher education, and in particular doctorates, have not been analysed.…”

A Comparative Analysis on Human Capital and Wage Structure in the Spanish Hospitality Sector

“…Human capital variables, such as mean schooling years (S), previous experience (Exp) 4 and tenure in the firm (Ten), and the gender of the employee (Gender) are derived from the characteristics of workers. Human capital variables were constructed following the work of [8] 5 . Gender is a dummy variable that takes value 1 if the individual is a woman and 0 otherwise.…”

Timely Intervention – Before It’s Too Hard

“…They conclude that the Australian states which "raised the school-leaving age in the 1960's increased the lifetime earnings of those individuals ' (p. 159). A Spanish study by Arrazola et al (2003) determined a rate of return to education from investment was approximately 9% which is similar to the Australian return above. The implication of this is that school retention of students with difficult behaviours and likelihood of dropping out will add to their personal life time earnings and reliance on society.…”