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Estimating wage equations for Hungarian higher-education graduates

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  • Peter Galasi

    (Budapest University of Economics and Public Administration)

Abstract

The paper investigates the wage determination of Hungarian highereducation graduates with using two samples of Hungarian careerbeginners, applying IV techniques and the multiple indicator solution so as to diminish potential estimation biases due to endogeneity of independent variables (especially the education variable) and the simultaneity of wages and working time. The results show that university education yields considerable wage premium as compared to college education, and that the return to education would be significantly underestimated by ols. The estimates confirm that foreign-language and IT knowledge also produce advantages in terms of wages.

Suggested Citation

  • Peter Galasi, 2003. "Estimating wage equations for Hungarian higher-education graduates," Budapest Working Papers on the Labour Market 0304, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:0304
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    File URL: http://www.econ.core.hu/doc/bwp/bwp/bwp0304.pdf
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    References listed on IDEAS

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    Cited by:

    1. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    2. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.
    3. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    4. Karoly Fazekas & Gabor Kezdi (ed.), 2007. "The Hungarian Labour Market 2007," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2007, December.
    5. Szilvia Hamori, 2005. "Comparative analysis of the returns to education in Germany and Hungary (2000)," Budapest Working Papers on the Labour Market 0507, Institute of Economics, Centre for Economic and Regional Studies.
    6. Victor Ginsburgh & Juan Prieto-Rodriguez, 2013. "Is there a Gender Bias in the Use of Foreign Languages in Europe?," Kyklos, Wiley Blackwell, vol. 66(4), pages 552-566, November.
    7. William Brock & Bo Chen & Steven N. Durlauf & Shlomo Weber, 2022. "Everybody’s Talkin’ at Me: Levels of Majority Language Acquisition by Minority Language Speakers," NBER Working Papers 30410, National Bureau of Economic Research, Inc.
    8. Julia Varga, 2006. "The Role of Labour Market Expectations and Admission Probabilities in Students' Application Decisions on Higher Education: The Case of Hungary," Education Economics, Taylor & Francis Journals, vol. 14(3), pages 309-327.
    9. Judit Kontseková, 2008. "Die Verzinsung von Ausbildung in drei benachbarten Transformationsländern und Österreich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 34(1), pages 83-104.

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