Nonlinearity in the Return to Education

This study estimates marginal rates of return to investment in schooling in 12 countries. Significant systematic nonlinearity in the marginal rate of return is found. In particular, the marginal rate of return is increasing significantly at low levels of education, and decreasing significantly at high levels of education. This may help explain why estimates of the return to schooling are often considerably higher when instrumenting for education.


Issue Date:
2005-05
Publication Type:
Journal Article
DOI and Other Identifiers:
Print ISSN 1514-0326 (Other)
Online ISSN 1667-6726 (Other)
PURL Identifier:
http://purl.umn.edu/37550
Published in:
Journal of Applied Economics, Volume 08, Number 1
Page range:
191-202
Total Pages:
12
JEL Codes:
I20; J24




 Record created 2017-04-01, last modified 2017-08-25

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