Returning to returns: revisiting the British education evidence

Dolton, Peter and Sandi, Matteo (2017) Returning to returns: revisiting the British education evidence. Labour Economics, 48. pp. 87-104. ISSN 0927-5371

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Abstract

We revisit the question of what is the rate of return to education in Great Britain. We make two contributions.
Firstly, we re-assess the robustness of Harmon and Walker (1995), Oreopoulos (2006) and Devereux and Hart
(2010) to equation specification and estimation method. Secondly, we generalize the previous IV approaches by
using the month of birth in the calculation of a more accurate IV exploiting the 1947, 1963 and 1972 UK School
Leaving Age reforms. Our results highlight the importance of equation specification and they provide a robust
case for a 6% Rate of Return to Education for men.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences
Depositing User: Joy Blake
Date Deposited: 11 Sep 2017 15:56
Last Modified: 11 Sep 2017 16:06
URI: http://sro.sussex.ac.uk/id/eprint/69726

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