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Article
Publication date: 26 June 2023

Corrado Andini and José Eusébio Santos

The aim is to study the impact of schooling on between-groups wage inequality beyond the lens of the standard approach in the literature.

Abstract

Purpose

The aim is to study the impact of schooling on between-groups wage inequality beyond the lens of the standard approach in the literature.

Design/methodology/approach

Simple econometric theory is used to make the main point of the paper. Supporting empirical evidence is also presented.

Findings

Disregarding the persistence of current earnings implies a bias in the estimation of the wage return to schooling both at labour-market entry and in the rest of the working life.

Research limitations/implications

The use of current earnings as a dependent variable in wage-schooling models may be problematic and requires specific handling.

Social implications

The impact of schooling on the between-groups dimension of wage inequality may be different than previously thought.

Originality/value

The paper is the first to show that, when current earnings are used as a dependent variable, the identification of a wage-schooling model with the standard (time-invariant external instrument-variable) approach may lead to misleading conclusions.

Details

Journal of Economic Studies, vol. 51 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 11 May 2010

Toseef Azid and Rana Ejaz Ali Khan

The purpose of this paper is to analyze the demand side determinants of schooling of Pakistani urban children and the factors affecting boys and girls' schooling separately.

Abstract

Purpose

The purpose of this paper is to analyze the demand side determinants of schooling of Pakistani urban children and the factors affecting boys and girls' schooling separately.

Design/methodology/approach

This is an empirical study using the non‐linear maximum likelihood probability (probit) function on primary data.

Findings

Besides other variables it has been observed that the poverty remains an important determinant of school participation. Poor households keep their children out of school due to their inability to afford the cost of schooling.

Research limitations/implications

On the basis of this study a socio‐economic policy can be formulated for a developing country like Pakistan.

Practical implications

A development policy can be formulated on the basis of this research for the enhancement of human resource development for a developing and an orthodox economy like Pakistan.

Originality/value

The paper is beneficial to the researchers, policy makers, and social scientists for the enhancement of the level of social welfare through its findings.

Details

International Journal of Social Economics, vol. 37 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 27 October 2021

Claudio E. Montenegro and Harry Anthony Patrinos

Young people experience lower employment, income and participation rates, as well as higher unemployment, compared to adults. Theory predicts that people respond to labor market…

Abstract

Purpose

Young people experience lower employment, income and participation rates, as well as higher unemployment, compared to adults. Theory predicts that people respond to labor market information. For more than 50 years, researchers have reported on the patterns of estimated returns to schooling across economies, but the estimates are usually based on compilations of studies that may not be strictly comparable. The authors create a dataset of comparable estimates of the returns to education.

Design/methodology/approach

The data set on private returns to education includes estimates for 142 economies from 1970 to 2014 using 853 harmonized household surveys. This effort holds the constant definition of the dependent variable, the set of controls, sample definition and the estimation method for all surveys.

Findings

The authors estimate an average private rate of return to schooling of 10%. This provides a reasonable estimate of the returns to education and should be useful for a variety of empirical work, including critical information for youth.

Originality/value

This is the first attempt to bring together surveys from so many countries to create a global data set on the returns to education.

Details

International Journal of Manpower, vol. 44 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 14 May 2018

Marshall Makate and Clifton Makate

The role of increased schooling on teenage childbirth has been expansively studied especially in developed countries. However, caveats remain in the case of low-income countries…

Abstract

Purpose

The role of increased schooling on teenage childbirth has been expansively studied especially in developed countries. However, caveats remain in the case of low-income countries especially Sub-Saharan Africa. The purpose of this paper is to ascertain the impact of increased schooling on the probability of first childbirth at 15 years or younger, 16-17, 18-19, and 20 years or older, in the important context of Uganda – a country with one of the highest adolescent fertility rates in Africa.

Design/methodology/approach

The empirical analysis uses recent data from the nationally representative Demographic and Health Survey for Uganda conducted in 2011. The authors then adopt a fuzzy regression discontinuity design, estimated using instrumental variables techniques that exploit the exogenous change in schooling impelled by the universal primary education policy enacted in 1997 in Uganda. The empirical approach compares the fertility outcomes for women born in 1984-1992 (i.e. exposed to the policy) to those born in 1973-1981 (i.e. non-exposed).

Findings

The authors find that a one-year increase in schooling lowers the probability of first childbirth at age the age of 15 years or younger, 16-17, 18-19, and 20 years or older by nearly 8.2, 9.2, 9.4, and 9.5 percentage points, respectively. Also, pathways through which education impacts teenage motherhood included information access through the media, increased literacy, prenatal care utilization, marital status, and unhealthy sexual behavior.

Originality/value

The paper uses nationally representative survey data to scrutinize the causal influence of schooling on the probability of first childbirth using the 1997 universal primary education in Uganda as a natural experiment to identify the impact of schooling. The study recommends that expanding primary schooling opportunities for girls may be an effective strategy toward accelerated reductions in teenage fertility in Uganda.

Details

International Journal of Social Economics, vol. 45 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 17 March 2021

Richard Kofi Asravor

The increasing rate at which individuals, especially, females in Ghana are seeking higher education calls for an estimation of the returns to schooling and education in Ghana.

Abstract

Purpose

The increasing rate at which individuals, especially, females in Ghana are seeking higher education calls for an estimation of the returns to schooling and education in Ghana.

Design/methodology/approach

The study employs the Mincer equation to a representative cross-sectional micro-data from Ghana using OLS and instrumental variable (IV) methodologies. The paper uses spouse's education as instruments in the IV estimation.

Findings

Return to schooling was found to be higher for females than males, likewise, membership of an old student associations and location of the household. Returns to education increases as the level of education rises whilst the rate of returns initially increases but fall as labour market experience rises. The study also found that the rates of return to education were higher for Christian, followed by Muslim and believers of other lesser-known religion in Ghana.

Research limitations/implications

Return to schooling was found to be higher for females than males. Likewise, individuals who are members of an old student association and are in urban areas were found to have a higher return to schooling than individuals who are not members of an old student association and are in rural areas. Returns to education increases as the level of education rises whilst the rate of returns initially increases but fall as labour market experience rises. The study also found that the rates of return to education were higher for Christian, followed by Muslim and believers of other lesser-known religion in Ghana.

Practical implications

Wage determination process is different for males and females, across religion and residency. The higher returns to schooling for females imply education is a good investment for women and girls and should be a development priority.

Social implications

The higher returns to schooling for females imply an investment in girl's education should be a development priority.

Originality/value

The paper extends the existing literature by focussing on the role of religion, old student's association (alma mater) and gender on the differential earning returns to schooling.

Details

International Journal of Social Economics, vol. 48 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 April 2015

Itismita Mohanty and ANU RAMMOHAN

– This paper aims to analyse factors that influence child schooling outcomes in India, specifically the role of gender.

Abstract

Purpose

This paper aims to analyse factors that influence child schooling outcomes in India, specifically the role of gender.

Design/methodology/approach

This paper uses data from the nationally representative Indian National Family Health Surveys 1995-1996 and 2005-2006 and estimates Heckman sample selection, cluster fixed-effects and household fixed-effects econometric models. The dependent variables are the child’s enrolment status and conditional on enrolment child’s years of schooling.

Findings

This analysis finds statistically significant evidence of male advantage both in schooling enrolment as well as years of schooling. However, using a cluster fixed-effects model, our analysis finds that within a village, conditional on being enrolled, girls spend more years in school relative to boys. Other results show that parental schooling has a positive and statistically significant impact on child schooling. There is statistically significant wealth effect, community effect and regional disparities between states in India.

Originality/value

The large sample size and the range of questions available in this data set, allows us to explore the influence of individual, household and village level social, economic and cultural factors on child schooling. The role of gender on child schooling within a village, intrahousehold resource allocation for schooling and regional gender differences in schooling are important issues in India, where education outcomes remain poor for large segments of the population.

Details

Indian Growth and Development Review, vol. 8 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 2 May 2017

Qihui Chen, Jingqin Xu, Jiaqi Zhao and Bo Zhang

The purpose of this paper is to estimate the returns to rural schooling in China, addressing both endogeneity in rural individuals’ schooling and self-selection into off-farm work.

Abstract

Purpose

The purpose of this paper is to estimate the returns to rural schooling in China, addressing both endogeneity in rural individuals’ schooling and self-selection into off-farm work.

Design/methodology/approach

This paper exploits geographical proximity to rural secondary schools to create instrumental variables (IV) for individuals’ years of schooling. It addresses both endogenous schooling and self-selection using the two-step procedure developed in Wooldridge (2002, p. 586).

Findings

The preferred IV estimate of schooling returns, 7.6 percent, is considerably higher than most previous estimates found in rural China.

Originality/value

This paper is among the few papers that examine returns to rural schooling in China while simultaneously addressing both endogeneity in individuals’ schooling and self-selection into off-farm work. Its findings suggest that rural education in China is potentially able to generate a respectable level of economic returns if policies are designed to provide greater school accessibility to rural individuals.

Details

China Agricultural Economic Review, vol. 9 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Article
Publication date: 30 July 2020

Kashif Munir and Ayesha Kanwal

The objectives of this study are threefold: firstly, to measure the impact of educational inequality on income inequality, and per capita income; secondly, to measure the impact…

3255

Abstract

Purpose

The objectives of this study are threefold: firstly, to measure the impact of educational inequality on income inequality, and per capita income; secondly, to measure the impact of gender inequality in education on income inequality, per capita income and educational inequality; and lastly, to test the Kuznets inverted U-shape hypothesis between inequality in education and average year of schooling.

Design/methodology/approach

The study has adopted the Marin and Psacharopoulos (1976) model of human capital in which income earned by an individual can be estimated as a function of number of year spent in schooling or education. Gini coefficient is used as a measure of income inequality, while inequality in education is measured by Gini index of educational inequality. Gender inequality in education is measured by the difference between male and female enrolment ratios as a proportion of male enrolment. The study utilizes the data of six South Asian countries, i.e. Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka from 1980 to 2010 at five-year average and employs fixed effect model (FEM) and random effect model (REM) for estimation.

Findings

Result suggests that educational inequality and average year of schooling have positive and significant impact on income inequality. Primary (basic) education and tertiary (higher) education reduce income inequality, while secondary education widens income inequality. Negative relationship exists between educational inequality and per capita income. Unequal distribution of education among boys and girls at primary level increases income inequality, while reduces income inequality at tertiary level. Gender inequality in secondary and tertiary level of education reduces per capita income, while unequal distribution of education among boys and girls further increases the educational inequality. Kuznets inverted U-shape hypothesis does not hold between education expansion and educational inequality, while weak U-shape relationship exists in South Asian countries.

Practical implications

Government has to provide free education in poor regions and makes employment programs to reduce the income and educational inequality respectively, while to remove gender inequality in education it is necessary to build more schools especially for girls. Government has to launch different online education programs for expansion in education at all levels.

Originality/value

This study adds to the literature by analyzing whether the inequality in income increases (decreases) due to increase (decrease) in educational and gender inequality in South Asian countries. This study contributes in the existing literature by developing a measure of educational and gender inequality in education in South Asian countries.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2020-0226.

Details

International Journal of Social Economics, vol. 47 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 24 June 2008

Gregory Lee and Howard Lee

In light of contemporary critiques of New Zealand comprehensive schooling published mainly in the popular press, it is timely to re‐examine the origins of and the rationale for…

2422

Abstract

In light of contemporary critiques of New Zealand comprehensive schooling published mainly in the popular press, it is timely to re‐examine the origins of and the rationale for the widespread adoption of this model of education. The comprehensive schooling philosophy, it was recently alleged, has produced a situation in which ‘as many as one in five pupils in the system is failing’ and where ‘there is a large group at the bottom who are not succeeding’. This group was estimated to include some 153,000 students out of the total current New Zealand student population of 765,000. In this context, however, Chris Saunders and Mike Williams, principals of Onehunga High School and Aorere College in Auckland respectively, have noted that having underachieving students in secondary schools in particular is not a recent phenomenon. A large ‘tail’ of poor performing high school students has long been a cause of concern, Williams suggests.

Details

History of Education Review, vol. 37 no. 1
Type: Research Article
ISSN: 0819-8691

Keywords

Article
Publication date: 16 January 2019

Elena Meschi, Joanna Swaffield and Anna Vignoles

The purpose of this paper is to assess the role of local labour market conditions and pupil educational attainment as primary determinants of the post-compulsory schooling…

Abstract

Purpose

The purpose of this paper is to assess the role of local labour market conditions and pupil educational attainment as primary determinants of the post-compulsory schooling decision.

Design/methodology/approach

Through the specification of a nested logit model, the restrictive independence of irrelevant alternatives (IIA) assumption inherent in the multinomial logit (MNL) model is relaxed across multiple unordered outcomes.

Findings

The analysis shows that the factors influencing schooling decisions differ for males and females. For females, on average, the key drivers of the schooling decision are expected wage returns based on youth educational attainment, attitudes to school and parental aspirations, rather than local labour market conditions. For males, higher local unemployment rates encourage greater investment in education.

Originality/value

The contribution of this paper to the existing literature is threefold. First, a nested logit model is proposed as an alternative to a MNL. The former can formally incorporate the structured and sequential decision-making process that youths may engage with in relation to the post-compulsory schooling decision, as well as relaxing the restrictive IIA assumption inherent in the MNL across multiple unordered outcomes, an issue the authors discuss in more detail in the Methodology section below. Second, the analysis is based on extremely rich socio-economic data from the Longitudinal Study of Young People in England, matched to local labour market data and administrative data from the National Pupil Database and Pupil Level Annual School Census, which provide a broad set of unusually high-quality measures of prior attainment. The authors argue that such high-quality data and an appropriate model specification allows identification of the determinants of the post-compulsory decision in a more detailed manner than many previous analyses. Third, the data have the scale necessary to consider whether the determinants of post-compulsory schooling decisions vary by gender, a particularly important issue given the differential education participation rates of males and females (e.g. in this cohort, females are about 10 percentage points more likely to go on to higher education in the UK than males), and the gendered choices of occupation (see, e.g. Bertrand, 2011). The work will, therefore, provide recent empirical evidence from England on gender differences in the determinants of education choices.

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