Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Estimates of the Return to Schooling and Variations Between Countries and Ability Groups

Sandberg, David LU (2021) NEKP01 20211
Department of Economics
Abstract
This study analyzes the return to schooling in 22 countries. More specifically, the effect on earnings of receiving a bachelor’s and a master’s degree is estimated by applying a propensity score matching approach on microdata. Unlike many other techniques, propensity score matching addresses selection bias to a higher extent making the estimates of the treatment effect on the treated more reliable. The findings suggest that receiving a degree results in around 15 percent higher earnings. To disentangle these estimates, each countries’ return to schooling is estimated separately to examine the relation between the return and country-level variables where social expenditure and income equality are negatively related to the return.... (More)
This study analyzes the return to schooling in 22 countries. More specifically, the effect on earnings of receiving a bachelor’s and a master’s degree is estimated by applying a propensity score matching approach on microdata. Unlike many other techniques, propensity score matching addresses selection bias to a higher extent making the estimates of the treatment effect on the treated more reliable. The findings suggest that receiving a degree results in around 15 percent higher earnings. To disentangle these estimates, each countries’ return to schooling is estimated separately to examine the relation between the return and country-level variables where social expenditure and income equality are negatively related to the return. Furthermore, this study provides evidence that the return to schooling varies between individuals belonging to different parts of the ability distribution as low-ability individuals even have a negative return to a master’s degree. The differences in returns across the ability distribution are even more evident when isolating countries with low social expenditure. (Less)
Please use this url to cite or link to this publication:
author
Sandberg, David LU
supervisor
organization
course
NEKP01 20211
year
type
H2 - Master's Degree (Two Years)
subject
keywords
return to schooling, selection bias, propensity score matching, cross-country analysis, ability
language
English
id
9061203
date added to LUP
2021-08-17 14:47:30
date last changed
2021-08-17 14:47:30
@misc{9061203,
  abstract     = {{This study analyzes the return to schooling in 22 countries. More specifically, the effect on earnings of receiving a bachelor’s and a master’s degree is estimated by applying a propensity score matching approach on microdata. Unlike many other techniques, propensity score matching addresses selection bias to a higher extent making the estimates of the treatment effect on the treated more reliable. The findings suggest that receiving a degree results in around 15 percent higher earnings. To disentangle these estimates, each countries’ return to schooling is estimated separately to examine the relation between the return and country-level variables where social expenditure and income equality are negatively related to the return. Furthermore, this study provides evidence that the return to schooling varies between individuals belonging to different parts of the ability distribution as low-ability individuals even have a negative return to a master’s degree. The differences in returns across the ability distribution are even more evident when isolating countries with low social expenditure.}},
  author       = {{Sandberg, David}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Estimates of the Return to Schooling and Variations Between Countries and Ability Groups}},
  year         = {{2021}},
}