The effect of lifelong learning on men's wages

Dorsett, R., Lui, S. and Weale, M. 2016. The effect of lifelong learning on men's wages. Empirical Economics. 15 (2), pp. 737-762. doi:10.1007/s00181-015-1024-x

TitleThe effect of lifelong learning on men's wages
AuthorsDorsett, R., Lui, S. and Weale, M.
Abstract

This paper develops a model of earnings and applies this to an examination of the effect of lifelong learning on men’s wages. Using data from the British Household Panel Survey, a variant of the mover–stayer model is developed in which hourly wages are either taken from a stationary distribution (movers) or closely related to the hourly wage one year earlier (stayers). Mover–stayer status is not observed, and we therefore model wages using an endogenous switching regression, estimated by maximum likelihood. Methodologically, the results support the mover–stayer characterisation since the restrictions required for the simpler specifications popular in the literature are rejected. Substantively, simulation of the estimated model shows some statistically significant effects from acquiring qualifications of a higher level than those previously held, but not from acquiring qualifications of the same level.

KeywordsLifelong learning; Returns to education; Switching regression; Wage dynamics
JournalEmpirical Economics
Journal citation15 (2), pp. 737-762
ISSN0377-7332
Year2016
PublisherSpringer
Accepted author manuscriptDorsett, Lui and Weale 2016 - Lifelong Learning, Returns to Education, Switching Regression, Wage Dynamics - accepted manuscript.pdf
Digital Object Identifier (DOI)doi:10.1007/s00181-015-1024-x
Web address (URL)https://link.springer.com/article/10.1007%2Fs00181-015-1024-x
Publication dates
Published online19 Nov 2015
Published in printSep 2016
Published19 Nov 2015

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