Does better education cause higher income?

Autor/inn/en	Homann, Malte; Jensen, Uwe
Institution	Hamburgisches WeltWirtschaftsInstitut
Titel	Does better education cause higher income? Gefälligkeitsübersetzung: Ist bessere Bildung ein Grund für höheres Einkommen?
Quelle	Hamburg (2013), 22 S. PDF als Volltext kostenfreie Datei Link als defekt meldenVerfügbarkeit
Reihe	HWWI research paper. 145
Sprache	englisch
Dokumenttyp	online; Monographie
ISSN	1861-504X
Schlagwörter	Bildungsniveau; Persönlichkeitsmerkmal; Zufriedenheit; Bildungsökonomie; Determinante; Arbeiter; Einkommensunterschied; Lohnhöhe; Vollzeitarbeit; Berufsprestige; Erwerbstätiger; Arbeitszeit; Ausbildungsabschluss; Angestelltenberuf; Arbeiterschaft
Abstract	While the positive influence of higher education on income has been repeatedly confirmed, the linking channel can be ambiguous. Within the framework of estimating the effect of income on life satisfaction, various sources of endogeneity caused by joint determination are addressed and the earnings equation is reconsidered, too: We cast doubt on the hypothesis of the direct influence of educational achievement on income, using two separate cross-section datasets for full-time employed, male white- or blue-collar workers from German SOEP data. Our data rather suggest that the socio-economic rank of an occupation serves as a factor which links educational achievement and income. One explanation relates to the signaling theory by Spence, another possible explanation is yielded by the existence of a regime of regulations in Germany that require certain formal qualifications to obtain highly-prestigious jobs which are, in general, also better paid. (Author's abstract, IAB-Doku).
Erfasst von	Institut für Arbeitsmarkt- und Berufsforschung, Nürnberg
Update	2014/2