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Returns to University Education: Evidence from a Dutch Institutional Reform

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  • DINAND WEBBINK

Abstract

In 1982 the duration of university education in the Netherlands was reduced from five to four years. This institutional reform is here used to estimate the causal effect of one year of university education on wages. I find that the fifth year of university education increased wages by 7%–9%. This differential is found by comparing wages of cohorts of graduates enrolling five years before and five years after the reform in a difference‐in‐differences approach.

Suggested Citation

  • Dinand Webbink, 2007. "Returns to University Education: Evidence from a Dutch Institutional Reform," Economica, London School of Economics and Political Science, vol. 74(293), pages 113-134, February.
  • Handle: RePEc:bla:econom:v:74:y:2007:i:293:p:113-134
    DOI: 10.1111/j.1468-0335.2006.00534.x
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    References listed on IDEAS

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    1. Salvanes, Kjell G & Aakvik, Arild & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," CEPR Discussion Papers 4088, C.E.P.R. Discussion Papers.
    2. Philip Oreopoulos, 2003. "Do Dropouts Drop Out Too Soon? International Evidence From Changes in School-Leaving Laws," NBER Working Papers 10155, National Bureau of Economic Research, Inc.
    3. Philip Oreopoulos, 2003. "Do Dropouts Drop Out Too Soon? Evidence from Changes in School-Leaving Laws," Working Papers oreo-03-01, University of Toronto, Department of Economics.
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    Cited by:

    1. Huebener, Mathias & Marcus, Jan, 2017. "Compressing instruction time into fewer years of schooling and the impact on student performance," Economics of Education Review, Elsevier, vol. 58(C), pages 1-14.
    2. Oosterbeek, Hessel & van den Broek, Anja, 2009. "An empirical analysis of borrowing behaviour of higher education students in the Netherlands," Economics of Education Review, Elsevier, vol. 28(2), pages 170-177, April.
    3. Samuel Perlo‐Freeman & Don J. Webber, 2009. "Basic Needs, Government Debt and Economic Growth," The World Economy, Wiley Blackwell, vol. 32(6), pages 965-994, June.
    4. Sergey Roshchin & Victor Rudakov, 2015. "Do Starting Salaries for Graduates Measure the Quality of Education? A Review of Studies by Russian and Foreign Authors," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 137-181.
    5. Erik Canton, 2009. "Human Capital Externalities and Proximity: Evidence from Repeated Cross-Sectional Data," De Economist, Springer, vol. 157(1), pages 79-105, March.
    6. Leyla Mocan, 2014. "The Impact of Education on Wages: Analysis of an Education Reform in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1424, Koc University-TUSIAD Economic Research Forum.
    7. Stanislav Avdeev, 2020. "Zero Returns To Higher Education: Evidence From A Natural Experiment," HSE Working papers WP BRP 236/EC/2020, National Research University Higher School of Economics.
    8. Jan Marcus & Vaishali Zambre, 2019. "The Effect of Increasing Education Efficiency on University Enrollment: Evidence from Administrative Data and an Unusual Schooling Reform in Germany," Journal of Human Resources, University of Wisconsin Press, vol. 54(2), pages 468-502.
    9. Joop Hartog & Sander Gerritsen, 2016. "Mincer Earnings Functions for the Netherlands 1962–2012," De Economist, Springer, vol. 164(3), pages 235-253, September.

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