| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w20250 |
| 来源ID | Working Paper 20250 |
| Life Cycle Earnings, Education Premiums and Internal Rates of Return | |
| Manudeep Bhuller; Magne Mogstad; Kjell G. Salvanes | |
| 发表日期 | 2014-06-19 |
| 出版年 | 2014 |
| 语种 | 英语 |
| 摘要 | What do the education premiums look like over the life cycle? What is the impact of schooling on lifetime earnings? How does the internal rate of return compare with opportunity cost of funds? To what extent do progressive taxes attenuate the incentives to invest in education? This paper exploits Norwegian population panel data with nearly career long earnings histories to answer these important questions. We provide a detailed picture of the causal relationship between schooling and earnings over the life cycle, following individuals over their working lifespan. To account for endogeneity of schooling, we apply three commonly used identification strategies. Our estimates show that additional schooling gives higher lifetime earnings and steeper age-earnings profile, in line with predictions from human capital theory. These estimates imply an internal rate of return of around 10 percent, after taking into account income taxes and earnings-related pension entitlements. Under standard conditions, this finding suggests it was financially profitable to take additional schooling because the rates of return were substantially higher than the market interest rates. By comparison, Mincer regressions understate substantially the rates of return. We explore the reasons for this downward bias, finding that it is driven by Mincer's assumptions of no earnings while in school and exogenous post-schooling employment. |
| 主题 | Labor Economics ; Labor Supply and Demand ; Labor Compensation |
| URL | https://www.nber.org/papers/w20250 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/577923 |
| 推荐引用方式 GB/T 7714 | Manudeep Bhuller,Magne Mogstad,Kjell G. Salvanes. Life Cycle Earnings, Education Premiums and Internal Rates of Return. 2014. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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