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Globalization and the Return to Education in Australia

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  • Nevile, J W
  • Saunders, Peter

Abstract

R. Reich (1991) 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. Copyright 1998 by The Economic Society of Australia.

Suggested Citation

  • Nevile, J W & Saunders, Peter, 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:279-85
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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. 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.
    3. 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.
    4. 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.
    5. 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.

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