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Exploring The Role Of Labour Market Uncertainty In Explaining Differences In Rates Of Return To Education In Europe

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  • DAVIA, Maria A.
  • McGUINNESS, Seamus
  • O’CONNELL, Philip J.

Abstract

This paper explores whether international differences in rates of return to education reflect variations in the level of risk associated with educational investments. We find no consistent evidence supporting that international differences in the rates of return to education are explained by variations in the level of market risk. For males we find that higher returns to ISCED-5 qualifications were related to a higher rate of dispersion in both the graduate and lower qualified labour markets, whereas for females we find that higher rates of return to ISCED-5 are more heavily related to general wage dispersion within the economy.

Suggested Citation

  • DAVIA, Maria A. & McGUINNESS, Seamus & O’CONNELL, Philip J., 2014. "Exploring The Role Of Labour Market Uncertainty In Explaining Differences In Rates Of Return To Education In Europe," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(3), pages 89-104.
    • Handle: RePEc:eaa:eerese:v:14:y2014:i:3_6
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    References listed on IDEAS

    as
    1. Hogan, Vincent & Walker, Ian, 2007. "Education choice under uncertainty: Implications for public policy," Labour Economics, Elsevier, vol. 14(6), pages 894-912, December.
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    5. Christian Belzil & Jörgen Hansen, 2004. "Earnings Dispersion, Risk Aversion And Education," Research in Labor Economics, in: Accounting for Worker Well-Being, pages 335-358, Emerald Group Publishing Limited.
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    8. Telhado Pereira, Pedro & Silva Martins, Pedro, 2002. "Is there a return-risk link in education?," Economics Letters, Elsevier, vol. 75(1), pages 31-37, March.
    9. McGuinness, Seamus & Kelly, Elish & O'Connell, Philip J., 2008. "The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland," Papers WP266, Economic and Social Research Institute (ESRI).
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 30. Selected readings on Women economics by the Euro-American Associations, 2001-2017
      by MCG Blogs de Economía in Euro-American Association: World Development on 2018-03-17 18:42:00

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    More about this item

    Keywords

    returns to education; wage dispersion; risk; EU-SILC.;
    All these keywords.

    JEL classification:

    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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