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Globalization and the Return to Education in Australia

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  • J. W. NEVILE
  • PETER SAUNDERS

Abstract

Reich argues that globalization will increase the relative earnings of those whose occupation involves identifying and solving problems and managing ideas. Hence, the return to education, especially education in the form of a university degree, will rise. This paper examines the return to education in Australia in the 1980s and shows that in the private sector there has been a substantial rise in the relative earnings of graduates. Due to special circumstances there has been a fall in the public sector. Previous findings of little change are the result of aggregation problems.

Suggested Citation

  • J. W. Nevile & Peter Saunders, 1998. "Globalization and the Return to Education in Australia," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 279-285, September.
    • Handle: RePEc:bla:ecorec:v:74:y:1998:i:226:p:279-285
    DOI: 10.1111/j.1475-4932.1998.tb01924.x
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    References listed on IDEAS

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    1. Jeff Borland & Roger Wilkins, 1996. "Earnings Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 7-23, March.
    2. Jeff Borland, 1996. "Earnings Inequality in Australia: Changes and Causes," Canadian International Labour Network Working Papers 05, McMaster University.
    3. Tran-Nam, Binh & Nevile, John W, 1988. "The Effects of Birthplace on Male Earnings in Australia," Australian Economic Papers, Wiley Blackwell, vol. 27(50), pages 83-101, June.
    4. McKinley L. Blackburn & David E. Bloom, 1994. "Changes in the Structure of Family Income Inequality in the United States and Other Industrial Nationa During the 1980s," NBER Working Papers 4754, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Sholeh A. Maani, 2004. "Why Have Maori Relative Income Levels Deteriorated Over Time?," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 101-124, March.
    2. Elisa Birch, 2006. "The public-private sector earnings gap; in Australia: a quantile regression approach," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(2), pages 99-123, June.
    3. Michael Coelli & Roger Wilkins, 2009. "Credential Changes and Education Earnings Premia in Australia," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 239-259, September.
    4. Sholeh A Maani, 2002. "Education and Maori Relative Income Levels over Time: The Mediating Effect of Occupation, Industry, Hours of Work and Locality," Treasury Working Paper Series 02/17, New Zealand Treasury.
    5. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.

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