The impact of child labor on schooling outcomes in Nicaragua

Child labor is considered a key obstacle to reaching the international commitments of Education For All. However, the empirical evidence on the effects of child labor on educational attainments is mostly limited to static measurements. This paper assesses the consequences of child labor on schooling outcomes over time by employing a three-year longitudinal household data set from Nicaragua. The potential endogeneity of past child labor and school outcomes is addressed through instrumental variables. The time a child dedicates to work is found to have harmful consequences on subsequent educational achievements, even after controlling for previous human capital accumulation and other factors. In particular, working over three hours a day is associated with school failure in the medium term. A distinction by type of work shows that time spent in market production has larger negative effects on school outcomes than time spent performing household chores.     

Perceived rates of return to higher education in Cyprus

The paper estimates perceived rates of return to higher education in Cyprus and uses them in logistic regression analysis in order to study the effect of economic considerations on the decision of secondary school pupils to pursue higher education. Unlike earlier studies, the data used in the computation of these rates are based wholly on the pupils' subjective estimates. The results are supportive of human capital theory: The mean rate of return to higher education estimated by higher education candidates is considerably higher than that perceived by labour market entrants. Logistic regression analysis shows the percieved rate of return to higher education, as estimated by both the elaborate and the short-cut methods, to have a significant effect on the pupils' educational intentions.     

Returning to school for higher returns

On the basis of those respondents in the National Longitudinal Survey of Youth (NLSY) who change jobs with an intervening period of education reinvestment, the conventional assumption of linearity of log wages in years of schooling is strongly rejected: a typical reinvestment for the 1980 through 1993 period is associated with a rise of about 3.5 percentage points in the estimated return to an additional year of schooling. The estimated marginal rate of return generally rises in the former education level, and reaches the maximum at 15 years of the former level (therefore 16 years of education after reinvestment), where an additional year of investment is associated with a rise in real hourly rate of pay by approximately 20%. Evidence also shows that, while the level of individuals’ risk tolerance affects significantly the probability of returning to school, correcting for sample selectivity makes little difference in the results. Findings in the current paper survive a variety of robustness tests. The current cohort-based evidence is more helpful than existing evidence from cross-sectional data to individuals making schooling decisions.     

Differences by degree: Evidence of the net financial rates of return to undergraduate study for England and Wales

This paper provides estimates of the impact of higher education qualifications on the earnings of graduates in the U.K. by subject studied. We use data from the recent U.K. Labour Force Surveys which provide a sufficiently large sample to consider the effects of the subject studied, class of first degree, and postgraduate qualifications. Ordinary Least Squares estimates show high average returns for women that does not differ by subject. For men, we find very large returns for Law, Economics and Management but not for other subjects. Degree class has large effects in all subjects suggesting the possibility of large returns to effort. Postgraduate study has large effects, independently of first degree class.A large rise in tuition fees across all subjects has only a modest impact on relative rates of return suggesting that little substitution across subjects would occur. The strong message that comes out of this research is that even a large rise in tuition fees makes little difference to the quality of the investment – those subjects that offer high returns (LEM for men, and all subjects for women) continue to do so. And those subjects that do not (especially OSSAH for men) will continue to offer poor returns. The effect of fee rises is dwarfed by existing cross subject differences in returns.     

Overeducation in developing economies: How can we test for it, and what does it mean?

A worker is said to be overeducated if he/she has acquired more education than is required to perform his/her job. In the absence of data measuring the number of years of schooling required to perform particular jobs, we propose a new approach to testing for overeducation. Overeducation is confirmed if we observe that education levels rose in jobs that offer very low returns to education and that underwent little technological change. Using labor force surveys from four developing countries, we find evidence of overeducation in unskilled jobs in the Philippines, mild evidence in Mexico, and little evidence in India and Thailand. We show that a job's mean and modal years of schooling are poor proxies for required education. We also show that overeducation sometimes increases within unskilled jobs, even while a growing share of educated workers enter skilled jobs. This may be because the quality of education segments the labor market.     

Attendance, schooling quality, and the demand for education of Mexican Americans, African Americans, and non-Hispanic whites

This study examines the influence of the opportunity costs of school attendance, educational quality attributes, and household socioeconomic status on the educational demand of Mexican Americans, African Americans, and non-Hispanic whites using the 1988–1990 surveys of the National Education Longitudinal Study. Implementing a utility-maximizing framework, educational demand assumes the form of schools' average daily attendance rates and student dropout decisions between the 8th and 10th grades. The basic results suggest that a school's attendance rate is sensitive to educational quality and student characteristics. Moreover, the demand for education measured by student attrition inversely relates to unexplained school attendance, and is positively affected by household socioeconomic status. Some policy recommendations based on the results are discussed.     

Effects of year-round schooling on disadvantaged students and the distribution of standardized test performance

Using detailed longitudinal data for the state of California, this paper estimates the effect of year-round school calendars on nationally standardized test performance of traditionally disadvantaged students. The student subgroups studied in this paper are: low socioeconomic status, limited English proficiency, Hispanic and Latino, and African American students. I find significant negative effects of multi-track year-round calendars on academic achievement for all subgroups examined, with only the limited English proficiency student subgroup producing unreliable estimates. Negative and significant results for another type of year-round calendar, single-track, are also found for the full sample of students and low socioeconomic status students.     

What determines the return to education: An extra year or a hurdle cleared?

The 1973 Raising of the School Leaving Age from 15 to 16 has been used to identify returns to years’ schooling. However, because the first set of “high stakes” exams are taken in the UK at age 16, the reform affected the proportion with qualifications, as well as schooling length. In order to shed light on whether the returns reflect the extra length of schooling or the increase in qualifications, we exploit another institutional rule – the Easter Leaving Rule – which we argue only affected the probability of obtaining qualifications (and not the length of schooling). We find sizeable returns to academic qualifications – increasing the probability of employment by 40% points – and our results suggest that qualifications drive most of the returns to education.     

Do colleges cultivate critical thinking, problem solving, writing and interpersonal skills?

We investigate how much value college enrollment adds to students’ critical thinking, problem-solving and communication skills, and the role college inputs play in developing these competencies, using data from a 2009 collegiate assessment pilot study in Colombia. Relative to observationally similar first year students, students in their final year of college score about half of a standard deviation higher, with statistically significant higher scores on every individual component of the test. Sensitivity analyses indicate that results are robust to validity threats posed by selection bias. Students in private colleges exhibit significantly higher overall test score differences. Measures of college quality such as selectivity, rankings based on reputation, share of faculty with PhD, share of full-time faculty and expenditures per student, however, are not meaningfully associated with higher test score differences between last and first year students.     

The returns to education in Slovenia

This article provides estimates of the returns to education in Slovenia. A Mincerian earnings function was estimated on three data sets, i.e. the 1978, 1983 and 1993 Household Expenditure Survey, with the subsample consisting of households where adults were employees (in the public or private sector). The estimated rates of return for all educational levels and for both men and women were rather low in 1978 and 1983. This can be explained with a tightly regulated labour market, with direct state interference-and thus small wage differentials. In 1993, the estimated rates of return increased considerably, though they are still somewhat lower than in most developed market economies. This increase was-without doubt-caused by a more deregulated labour market and a strong push towards market liberalization.     

Economic returns to education: What We Know, What We Don’t Know, and Where We Are Going—Some brief pointers

The estimation of the economic return to education has perhaps been one of the predominant areas of analysis in applied economics for over 50 years. In this short note we consider some of the recent directions taken by the literature, and also some of the blockages faced by both science and policymakers in pushing forward some key issues. This serves by way of introduction to a set of papers for a special issue of the Economics of Education Review.     

The changing structure of teacher compensation, 1970–1994

This paper considers how the structures of teacher salaries in public school districts have changed over the last quarter century and whether salary increases have been allocated so as to achieve the greatest gain in educational quality. Using New York state data for the 1970–1994 period, we find that even though some districts appear to behave in ways consistent with the often expressed goal of recruiting and retaining the most able college graduates, most districts do not. The vast majority of districts have inefficiently allocated a disproportionately large share of resources to veteran teachers for whom job tenure is only marginally affected. This finding has important implications for the policy debate regarding whether increased spending on education will, or could, improve educational performance as well as the design of alternative compensation schemes.     

The impact of college timing on earnings

Adult students, those 25-yrs-old and over, currently constitute 43% of all college students. This paper investigates the importance of the timing of schooling in determining earnings. It is revealed that those who complete college at a later age receive a significantly smaller initial increase in earnings than those who acquire their education earlier in life. This result is important for both personal human capital investment decisions and policy makers.     

The effect of immigrant concentration in schools on native and immigrant children's reading and math skills

Using a unique and very rich PISA dataset from Denmark, we show that the immigrant concentration in the school influences reading and math skills for both immigrant children and native children. Overall, children in schools with a high immigrant concentration score lower on reading and math test scores. The negative effects associated with attending a school with a high immigrant concentration are fairly robust across estimation methods. IV estimates, taking into consideration that parental sorting across neighborhoods might bias the OLS estimates, indicate that immigrant concentration in schools is still important in determining children's math test scores. The estimates are less precise regarding the effect of immigrant concentration on reading test scores. The immigrant concentration in the school has a stronger effect for native children than for immigrant children, but the differences are more pronounced for the math test.     

Parental education, grade attainment and earnings expectations among university students

While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income for example), many of the pathways through which these outcomes are transmitted are not as well understood. We address this deficit by analysing the relationship between socio-economic status and child outcomes in university, based on a rich and unique dataset of university students. While large socio-economic differences in academic performance exist at the point of entry into university, these differences are substantially narrowed during the period of study. Importantly, the differences across socio-economic backgrounds in university grade attainment for female students is explained by intermediating variables such as personality, risk attitudes and time preferences, and subject/college choices. However, for male students, we explain less than half of the socio-economic gradient through these same pathways. Despite the weakening socio-economic effect in grade attainment, a key finding is that large socio-economic differentials in the earnings expectations of university students persist, even when controlling for grades in addition to our rich set of controls. Our findings pose a sizable challenge for policy in this area as they suggest that equalising educational outcomes may not translate into equal labour market outcomes.     

Subject choice and earnings of UK graduates

Using a survey of a cohort of UK graduates, linked to administrative data on higher education participation, this paper investigates the labour market attainment of recent graduates by subject of study. We document a large heterogeneity in the mean wages of graduates from different subjects and a considerably larger one within subject with individuals with the most favourable unobserved characteristics obtaining wages almost twice as large as those with the worst. Moreover, gender differences in wages within subjects are also large. We then simulate a graduate tax to calculate a willingness to pay – in form of tuition fees – to capture these subject wage premia.     

Are returns to education on the decline in Venezuela and does Mission Sucre have a role to play?

Anecdotal evidence points to a falling standard of living for the educated in Venezuela. During this same period, President Hugo Chávez implemented several education reforms. We focus on a major university education reform known as Mission Sucre and its potential impact on returns to university education. First, we show that returns to education decreased significantly in Venezuela from 2002 to 2008. Subsequently, we explore the impact of the program on non-program participants and provide evidence that a substantial part of the falling returns at the tertiary level can be linked to Mission Sucre. Our results suggest that the reform created a negative externality on students who did not participate in the program, leading to a 2.7 percentage point decline in returns to university education for non-Mission Sucre students in the 23–28 age cohort.     

Which children benefit from non-parental care?

This paper investigates the relationship between non-parental care and toddlers’ behavioral outcomes using data from Australia. In particular, we explore heterogeneity in the relationship using the unique data on quality attributes: carer/child ratio, share of qualified staff, and expert ratings. The results suggest that full-time non-parental care, particularly center care, is negatively associated with toddlers’ behavioral outcomes. The negative association is however mitigated when centers have a larger number of carers per child. The negative association between non-parental care and behavioral outcomes also appears to be larger for children with better-educated parents.