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Does Formal Education for Older Workers Increase Earnings? Analyzing Annual Data Stretching Over 25 Years

Author

Listed:
  • Stenberg, Anders

    (Swedish Institute for Social Research, Stockholm University)

  • de Luna, Xavier

    (Department of Statistics, Umeå University)

  • Westerlund, Olle

    (Department of Economics, Umeå University)

Abstract

Governments in the US, Canada and Europe have expressed an ambition to stimulate education of older. In this paper, we analyze if there are effects on annual earnings of formal education for participants aged 42-55 at the time of enrolment in 1994-1995. The analysis explores longitudinal population register data stretching from 1982 to 2007. The method used is difference-in-differences propensity score matching based on a rich set of covariates, including indicators of health and labor market marginalization. Results differ from earlier studies, implying no significant average earnings effects for males, positive effects for females, although insufficient to cover total costs.

Suggested Citation

  • Stenberg, Anders & de Luna, Xavier & Westerlund, Olle, 2011. "Does Formal Education for Older Workers Increase Earnings? Analyzing Annual Data Stretching Over 25 Years," Working Paper Series 8/2011, Stockholm University, Swedish Institute for Social Research.
    • Handle: RePEc:hhs:sofiwp:2011_008
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    References listed on IDEAS

    as
    1. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 352-352.
    2. Giorgio Brunello & Pietro Garibaldi & Etienne Wasmer, 2007. "Education and training in Europe," SciencePo Working papers Main hal-03415950, HAL.
    3. Deborah A. Cobb‐Clark & Thomas Crossley, 2003. "Econometrics for Evaluations: An Introduction to Recent Developments," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 491-511, December.
    4. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute of Labor Economics (IZA).
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    Cited by:

    1. Anders Stenberg & Olle Westerlund, 2015. "The long-term earnings consequences of general vs. specific training of the unemployed," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    2. Andrea Cegolon, 2015. "Determinants and Learning Effects of Adult Education-Training: a Cross-National Comparison Using PIAAC Data," DoQSS Working Papers 15-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    3. Anders Stenberg & Olle Westerlund, 2013. "Education and retirement: does University education at mid-age extend working life?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.

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    More about this item

    Keywords

    Adult education; Earnings; Government Expenditures; Human capital;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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