nep-edu New Economics Papers
on Education
Issue of 2007‒01‒14
thirteen papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. The Effect of Education on Fertility: Evidence from Compulsory Schooling Laws By Alexis León
  2. Education and Wage Inequality in Portugal By Budria, Santiago; Nunes, Celso
  3. Regional Differences in Returns to Education in Portugal By Jose Antonio Cabral Vieira; Joao Pedro Couto; Maria Teresa Tiago
  4. Education and crime: evidence from Italian regions By Paolo Buonanno; Leone Leonida
  5. Efficiency and Productivity in Finnish Comprehensive Schooling 1998-2004 By Juho Aaltonen; Tanja Kirjavainen; Antti Moisio
  6. “Titulados superiores y éxito laboral: determinantes” By Saez, Felipe; Sanjuán, Ana
  7. Lost, Dysfunctional or Evolving? A View of Business Schools from Silicon Valley By Eischen, Kyle; Singh, Nirvikar
  8. The Career Development of Young Japanese People: The Attainment of Self-Confidence in Career Development` By Chisato Ogawa
  9. Investments in Higher Education and the Economic Performance of OECD Member Countries By Amnon Frenkel; Eran Leck
  10. Education Vouchers: Means Testing Versus Uniformity By John Creedy
  11. Education and Income Dynamics in Urban and Regional Labour Market Mobility By Lasse Sigbjorn Stambol
  12. The impact of young motherhood on education, employment and marriage By Bradbury, Bruce
  13. Incentives to Research in European Public Universities By Joan Rosselló

  1. By: Alexis León
    Abstract: . . .
    Date: 2006–12
  2. By: Budria, Santiago; Nunes, Celso
    Abstract: This article summarises the recent literature on the relationship between inequality in wages and education for Portugal. The main conclusions are the following. First, Portu-gal is one of the OECD countries with lowest educational level. At the same time, re-turns to education are large, and suggest that skills are particularly valuable in the Por-tuguese labour market. Second, over the last two decades returns to education increased steadily, which suggests that skill-biased technological change is partly responsible for the observed pattern. Analysis of the returns across educational levels and the dispersion of returns over the wage distribution reveals that education may have helped to increase both between-group and within-group inequality. Third, the recent evolution of average years of education has lead to a considerable increase in the standard measures of over-education, particularly among younger cohorts. Since schooling mis-matches are associated with lower wages, recent changes in the educational composition of the workforce may have conse-quences for the wage distribution. Fourth, some conclusions can also be established on the interaction between formal education and acquired skills. Most forms of training are associ-ated with higher wages and appear to act as remedial education. Less educated individuals are less likely to get trained. However, once trained, they obtain larger returns. Finally, analysis of employment opportunities and school-to-work transitions suggests that more edu-cated individuals benefit from better job opportunities and receive more job offers.
    Keywords: Wage inequality; Returns to education; signalling; training
    JEL: J31 D31
    Date: 2005–06
  3. By: Jose Antonio Cabral Vieira; Joao Pedro Couto; Maria Teresa Tiago
    Abstract: This paper analyses differences in the return to education in Portugal across regions. For this purpose, we use an extended Mincer-type wage equation. OLS regression results indicate that differences in the rewards to education are substantially different across regions. In particular, they are much higher in Lisbon than in other regions. Since the average level of education in Lisbon is much higher in Lisbon than elsewhere such a differential is attributed to the fact that the demand for educated labour is much higher in Lisbon, likely due to differences in technology. A quantile regression analysis reveals that the return to education is not constant across the whole conditional wage distribution. This is valid for the 18 regions examined, although once again the impact of education on wages is higher in Lisbon regardless the quantile we examine.
    Date: 2006–08
  4. By: Paolo Buonanno (Department of Economics, University of Bergamo); Leone Leonida (Department of Economics, Queen Mary University of London)
    Abstract: This paper studies the impact of education on criminal activity in Italy. We propose a theoretical framework to determine the effects of education and past incidence of crime on criminal activity, and we test its predictions using annual data for the twenty Italian regions over the period 1980-1995. The results show that education is negatively correlated with delinquency and that crime rates display persistence over time. Our results are robust to model specifications and endogeneity.
    Keywords: Crime; Education; Panel Data
    JEL: I2 J24 K42
    Date: 2005–06
  5. By: Juho Aaltonen; Tanja Kirjavainen; Antti Moisio
    Abstract: This study measures efficiency differences and productivity changes of Finnish municipalities providing comprehensive school education during 1998-2004 by estimating both production and cost functions. The average inefficiency was approximately 6-10 percent during 1998-2004 based on both production and cost function estimations. Both approaches also produced very similar inefficiency rankings for the municipalities. Based on the results of cost functions, both the size of the municipality and average school size had a nonlinear impact on costs. The optimal municipal size was approximately 24 000-37 000 inhabitants and optimal school size was 690 students. The share of students in remedial instruction, the share of students using transportation, and taxable income per inhabitant had a positive impact on costs whereas the share of students in lower school decreased the costs. The productivity of the comprehensive schools decreased on average 12 percent during the period. The increase in per capita taxable income and the share of students in remedial instruction had the biggest impact on the productivity decrease whereas the increase in school size clearly enhanced productivity.
    Keywords: comprehensive education, efficiency, productivity
    Date: 2006–12–20
  6. By: Saez, Felipe (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Sanjuán, Ana (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid)
    Keywords: job market; employment; education
    JEL: J23
  7. By: Eischen, Kyle; Singh, Nirvikar
    Abstract: Recent articles have rekindled discussions around the direction and relevance of US business schools. The two main viewpoints are distinct but equally critical. On one hand, business schools are considered overly focused on “scientific research” and having lost their connection to “real world” and management issues. On the other hand, schools are considered “dysfunctionally” focused on media rankings and short-term superficial marketing fixes. Our study of educational opportunities and workforce development in Silicon Valley suggests a different viewpoint. We agree that both approaches correctly identify the challenge of preparing managers in globalized world. However, we believe they misdiagnose the cause of the failure. Rather than being lost or dysfunctional, we believe business programs — like the firms and students they serve — are in the process of evolving to meet a shifting global and local environment. Our findings indicate that business schools face structural, content, and program shifts. Educationally, business programs continue to be seen as doing a good job of educating their students in core functional areas and processes. However, they do less well in teaching their graduates interpersonal skills, real-time decision-making, recognition of contexts, and integration across functional areas. These are increasingly the skills demanded by the global business environment. Even more challenging is meeting the demand for both sets of skills within very specialized fields like technology management. Structurally, new types of students and learning demands are placing stresses on traditional full-time two-year programs and their business models. Women and minority groups increasingly form the majority of the future student population, with distinct needs and demands for part-time and executive education. This shift is also evident in demands for life-long learning and engagement as opposed to a fixed, one-shot program experiences. These challenges require business schools to build upon what they do well, while innovating to serve new business and student needs.
    Keywords: management education; Silicon Valley; globalization; technology
    JEL: R11 I23 L80 M00
    Date: 2005–10
  8. By: Chisato Ogawa
    Abstract: Many young Japanese people seem to be able to determine goals towards their career development. However, many appear to struggle to take action towards their intended goal, often due to a lack of confidence, or an inability to make decisions without guidance or assistance from others. As a result, we think that perhaps a misconception is formulated by the community that young Japanese people drift around aimlessly without a sense of purpose or direction towards a career path, even after graduating from universities. In contrast, students in professional training schools appear to be more self-confident and decisive in choosing their career path. Perhaps, this is due to the different educational environments between the professional training schools and the general school system in Japan. For example, students who attend professional training schools live together during the training, whereby they have the opportunity to interact with each other under the guidance of their teachers. As a result, students appear to develop effective communication skills that perhaps contribute to increased self-confidence. This research focuses on the career development of young Japanese people to analyze how they attain self-confidence to action their career development path. Semi-structured interviews were conducted with young Japanese people including university students and professional candidates to examine their ability to identify a career path. We believe that young Japanese people are able to identify their career path and the steps necessary to follow, however it appears that many lack the confidence to initiate the process towards their chosen career.
    Date: 2006–08
  9. By: Amnon Frenkel; Eran Leck
    Abstract: Universities and academic research institutions play an important role in contributing to the economic growth of countries, mainly through the diffusion of scientific knowledge, new methods, and technologies. This study investigates the relationship between investments in higher education and the economic performance of developed countries. Cross-sectional data, relating to higher education, workforce composition, and macro-economic indicators, were analyzed. The empirical analysis was based on data gathered from international datasets: World Development Indicators (WDI) of the World Bank, OECD Statistics Portal, and UNSECO for the 30 OECD member states. The main research hypothesis was that a positive and significant linkage exists between investment in higher education and economic growth. The examination was carried out by employing two models. The first model (a two-stage model) assumed that an indirect link existed between higher education and economic growth. The instrumental indicator used in the analysis was the country’s labor force composition (specifically, the percentage of employees in scientific and engineering fields). The second model employed a multivariate regression model to directly test the relationship between higher education and growth indicators. The research findings show that higher education inputs translate into human capital outputs (a trained workforce in the computing, science, and engineering fields), and these transform back into the inputs that explain the economic performance of OECD countries. Smaller European countries, such as Finland, the Netherlands, and Denmark, are more efficient in translating their educational investments into a high-quality labor force. The two main activities of universities - teaching and research - were found to be connected to enhancing the per capita GDP of OECD countries. The research findings also support evidence from other studies that show decreasing returns to scale in education. The elasticity of per capita GDP with respect to R&D expenditure per student and the expenditure on teaching in research universities were found to be fairly large, with a constant elasticity of 0.78% and point elasticities (when expenditure on teaching is held constant) ranging from 0.04% (Turkey) to 0.84% (Sweden). Point elasticities for the majority of OECD countries were found to be at the 0.2%-0.5% level.
    Date: 2006–08
  10. By: John Creedy
    Abstract: This paper compares a uniform education voucher system with means-tested scheme in which the voucher is subject to a taper or withdrawal rate as parental gross income increases. Parents are assumed to maximise a utility function which includes their consumption, leisure and the human capital of children. The human capital production function has inputs consisting of parental human capital and expenditure on education. The government faces a budget constraint such that the voucher and a social dividend are financed from a proportional income tax. Alternative combinations of voucher and tax and transfer schemes are evaluated using a social welfare function defined in terms of the utility of parents. It is found that for all combinations of policy variables, a uniform voucher turns out to be optimal. However, if a binding constraint is placed on the maximum tax rate, means-testing, with a low taper, is found to be optimal.
    Date: 2006
  11. By: Lasse Sigbjorn Stambol
    Abstract: Well-functioning local labour markets are expected to become net receivers of labour from other regions. In addition these regions are also expected to attract the most qualified labour and thus be the winners in the competition for the best human capital. For an examination of the two concepts "brain-gain" (a relative gain of qualified persons) and "brain-drain" (a relative loss of qualified persons), we do introduce a concept of average education based on the number of years each person have been in education altogether. There are thus reasons to expect that the regions with the highest net in-migration to job also benefit from a "brain-gain" through the migration process and vice-versa that regions experiencing a strong net loss through the migration process also suffer from a "brain-drain" in this respect. Some regions may, however, compensate a negative net-migration with a "brain-gain" through the migration process, whilst some regions may experience a "brain-drain" through migration in spite of positive net in-migration. The "brain-gain", "brain-drain" approach poses also important questions in terms of intra- and interregional competitiveness of human capital across the different industrial sectors, which is also taken into consideration in the analysis. We have as well put forward hypotheses expecting that employed persons that add to their highest formal education another year of formal education will also raise their income above the average increase of income. On the other hand the most qualified labour expects to achieve as much return on their human capital investment as possible, pushing their careers in direction of those regions and those sectors of the economy that actually give the best return. The final section of the paper is thus stressing two main aspects of these topics, first analysing the relative rise of income among employed persons changing their educational level, and second analysing the return to human capital by help of changes in personal income in different person groups by industrial sectors and regional typologies.
    Date: 2006–08
  12. By: Bradbury, Bruce
    Abstract: The poor socio-economic outcomes of women who have their first child when young are well documented. However, the policy implications of this association depend upon the causal mechanisms that underlie it. Recent studies in the US and UK have used miscarriage as an instrument to identify the direct causal impact of young childbearing – with US research suggesting that early child-bearing may even have a beneficial impact upon mother’s outcomes. This paper uses this method to examine this issue for a new Australian panel of young women. No evidence is found for an adverse impact of young childbirth on education, labour market, income or location. Instead these outcomes follow the patterns that might be expected on the basis of selection effects. On the other hand, young motherhood does have an impact on partnering outcomes. Being a young mother reduces the likelihood of being legally married (instead of defacto partnered) when aged in the late 20s. Also, having a child in the early rather than late 20s leads to a greater likelihood of being a lone parent at around age 30.
    Keywords: teenage mothers; miscarriage
    JEL: J12 J13
    Date: 2006–09
  13. By: Joan Rosselló (Universitat de les Illes Balears)
    Abstract: In this paper we study the implementation of policy incentives aimed at increasing the research output at European public universities by university managers and public administrations. Although public universities are subject to significant management rigidities, we provide some interesting policies aimed at increasing their research output. We pay special attention to the principal agent problem between professors and university managers due to the career options that professors face outside the university.
    Keywords: Efficiency, productivity, professors’ salaries, incentives to research, state and federal aid, resource allocation.
    JEL: I20 I21
    Date: 2006

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