nep-edu New Economics Papers
on Education
Issue of 2014‒07‒28
28 papers chosen by
João Carlos Correia Leitão

  1. Are you on the right track? The effect of educational tracks on student achievement in upper-secondary education in Hungary By Zoltan Hermann
  2. Does private tutoring increase students’ academic performance? Evidence from Turkey By Giray Berberoglu; Aysit Tansel
  3. Using group method of teaching to address the problem of large class size: an action research. By Mintah, Emmanuel Kofi
  4. Operation of distance education at the tertiary level: A case study of students of Cape Coast University, Valley View University and University of Education Winneba By Mintah, Emmanuel Kofi; Osei, Samuel
  5. The effect of decentralization on educational outcomes: real autonomy matters! By Paula Salinas
  6. Teaching Practices and Social Capital By Algan, Yann; Shleifer, Andrei
  7. Student Portfolios and the College Admissions Problem By Chade, H.; Lewis, Gregory; Smith, L.
  8. On the test score gap between Roma and non-Roma students in Hungary and its potential causes By Gabor Kertesi; Gabor Kezdi
  9. Late Start with Extra Schooling: The Effect of School Entry-Age Increase and the Introduction of Preparatory Year* By Nikhil Jha
  10. Achieving Escape Velocity: Neighborhood and School Interventions to Reduce Persistent Inequality By Fryer, Roland Gerhard; Katz, Lawrence F.
  11. Should I Stay or Should I Go? An Investigation of Graduate Regional Mobility in the UK and its Impact upon Early Career Earnings By Kidd, Michael; O'Leary, Nigel C.; Sloane, Peter J.
  12. Life Cycle Earnings, Education Premiums and Internal Rates of Return By Bhuller, Manudeep; Mogstad, Magne; Salvanes, Kjell G.
  13. Skill-Biased Technical Change and the Cost of Higher Education By Fang Yang; John Bailey Jones
  14. Evolução da Formação de Engenheiros e Profissionais Técnico-Científicos no Brasil Entre 2000 e 2012 By Divonzir Arthur Gusso; Paulo A. Meyer M.Nascimento
  15. What employers value in the MBAs they recruit: Rebalancing the management education curriculum By Rao, T. V.; Saxena, Siddhartha Satish; Vijaya Sherry Chand; Narendran, Rajeshwari; Bharathan, Kandaswamy; Jajoo, B H
  16. Academic Patents and Technology Transfer By Drivas, Kyriakos; Economidou, Claire; Karamanis, Dimitris; Zank, Arleen
  17. The Career Prospects of Overeducated Americans By Clark, Brian; Joubert, Clement; Maurel, Arnaud
  18. How Innovative is the Education Sector? By OECD
  19. Expanding the School Breakfast Program: Impacts on Children's Consumption, Nutrition and Health By Diane Whitmore Schanzenbach; Mary Zaki
  20. The Wage Returns to On-the-Job Training: Evidence from Matched Employer-Employee Data By Almeida, Rita K.; de Faria, Marta Lince
  22. Publish or Perish: An Analysis of the Academic Job Market in Italy By Daniele Checchi; Gianni De Fraja; Stefano Verzillo
  23. It's A Sin - Contraceptive Use, Religious Beliefs, and Long-Run Economic Development By Prettner, Klaus; Strulik, Holger
  24. Great expectations The unintended consequences of educational choices By Francesco Ferrante
  25. Returns to Schooling for Urban Residents and Migrants in China: New IV Estimates and a Comprehensive Investigation By Chris SAKELLARIOU; Fang ZHENG
  26. Stature, Skills and Adult Life Outcomes: Evidence from Indonesia By Olivier Bargain; Jinan Zeidan
  27. Overeducation in the early career of secondary education graduates: An analysis using sequence techniques By D. VERHAEST; T. SCHATTEMAN; W. VAN TRIER

  1. By: Zoltan Hermann (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: The paper attempts to identify causal effects of being enrolled in different educational tracks on student achievement in upper-secondary education in Hungary. Rejected and admitted students are compared who applied to the same school and performed similarly in the previous grade. Average treatment effects on the treated are estimated with a matching method. Results indicate that higher track significantly raises student achievement. Beside the effect of tracks, the schools preferred by students within the tracks also provide better educational quality. Comparing the effects of tracks and differences within the tracks reveals that the advantage of the academic track does not differ from that of better schools in general. At the same time, the vocational track incurs substantial losses that are in part specific to that track.
    Keywords: education, tracking, matching, equality of opportunity
    JEL: I20 I21 I24
    Date: 2013–11
  2. By: Giray Berberoglu (Department of Secondary Mathematics and Science Education, METU); Aysit Tansel (Department of Economics, METU; Institute for the Study of Labor (IZA) Bonn, Germany; Economic Research Forum (ERF) Cairo, Egypt)
    Abstract: This paper investigates the effectiveness of private tutoring in Turkey. The authors introduce their study by providing some background information on the two major national examinations and three different kinds of tutoring. They then describe how they aimed to analyse whether attending private tutoring centres (PTCs) enhances Turkish students’ academic performance. By way of multiple linear regression analysis, their study sought to evaluate whether the impact of private tutoring varies in different subject areas, taking into account several student-related characteristics such as family and academic backgrounds as well as interest in and perception of academic success. In terms of subject areas, the results indicate that while private tutoring does have a positive impact on academic performance in mathematics and Turkish language, this is not the case in natural sciences. However, as evidenced by the effect sizes, these impacts are rather small compared to the impacts of other variables such as interest in and perception of academic success, high school graduation fields of study, high school cumulative grade point average (CGPA), parental education and students’ sociocultural background. While the authors point out that more research on the impact of further important variables needs to be done, their view is that school seems to be an important factor for determining students’ academic performance.
    Keywords: Private tutoring, Academic Performance, Regression analysis, Turkey.
    JEL: I20 I21 I22
    Date: 2014–07
  3. By: Mintah, Emmanuel Kofi
    Abstract: Large class sizes in Ghanaians schools with its attendants problems are major factors for the dwindling academic performance of students in Ghana. To solve this, means reducing the number of students which implies depriving some children from their right to education or building more schools and employing more staff which will bloat government expenditure. This paper brings to light the best and innovative method of addressing the problem of large class sizes. Test, interview, observation and questionnaires were the main data collection instruments used. The study revealed that Ghanaian schools have large class sizes. The following were identified to be problems of large classes: inappropriate methods of teaching; inappropriate mode of assessment; stifled students’ creativity; inattention to students’ problems. The research further showed that group method of teaching Financial Accounting is the best way of addressing the problem of large class size. It is recommended that teachers use appropriate method of teaching to motivate, arouse and sustain students’ interest in their subjects. Again, school administrators must organize regular in-service training to teachers and also monitor closely the work of teachers and students. Stakeholders of education must institute reward and incentive schemes to motivate teachers to give of their best.
    Keywords: Group method of teaching, Large class size, Action research
    JEL: I2
    Date: 2014–03–31
  4. By: Mintah, Emmanuel Kofi; Osei, Samuel
    Abstract: The Operation of Distance Education has become a major mode of education because the conventional education is unable to meet the growing demand for admission into tertiary institutions. Through application of purposive sampling technique (procedure) this research brings to light the operations of Distance Education in Ghana at the tertiary level. In establishing this, literature covering different aspects of operational challenges is reviewed. Both qualitative and quantitative analyses were applied. The results from the respondents denote ´´good´´ impression about the operation of Distance Education in that the students can add more academic and professional value to their careers while working. However, socio-economic and financial factors posed problems for Distance Education participants. Combination of work and studies identified as major challenge in pursuing Distance Education. The use of electronic media, employing more tutors, ensuring relatively permanent teaching- learning venues and other factors facilitate efficacy and considerable improvement of Distance Education operation in Ghana. To make distance education more effective, the following recommendations are made: modern I.C.T. tools must be used in the operation Distance Education; institutions and organizations should be made to accept Distance Education Certificates; more lecturers/instructors should be employed; study leave for Distance Education students to solve financial difficulty the students face; and the scope of Distance Education should be widen to cover many subjects taught.
    Keywords: Distance Education, Operations, Tertiary Level of Education, Opening Learning, Socio-economic background.
    JEL: I2
    Date: 2014–03–31
  5. By: Paula Salinas (Universitat de Barcelona & IEB)
    Abstract: This paper uses cross-national data to examine the effects of different dimensions of decentralization on the efficiency of educational policies in OECD countries. The results show that the autonomy of subnational governments, both on the expenditure and revenue sides of their activities, is what really matters in determining the effect of decentralization on educational outcomes. The decision-making autonomy of subnational governments with regard to the regulation and management of the educational system has a significant and positive effect on educational attainment, though this varies with the degree to which subnational governments are held accountable for their taxing decisions. These results are robust to the different analyses conducted, thus corroborating that they are not driven by the potential endogeneity of decentralization policies.
    Keywords: Fiscal federalism, decentralization, education, OECD, PISA
    JEL: H11 H52 H75 H77 I28
    Date: 2014
  6. By: Algan, Yann; Shleifer, Andrei
    Abstract: We use several data sets to consider the effect of teaching practices on student beliefs, as well as on organization of firms and institutions. In student level data, teaching practices (such as teachers lecturing versus students working in groups) exert a substantial influence on student beliefs about cooperation both with each other and with teachers. In cross†country data, teaching practices shape both beliefs and institutional outcomes. The relationship between teaching practices and student test performance is nonlinear. The evidence supports the idea that progressive education promotes social capital.
    Date: 2013
  7. By: Chade, H.; Lewis, Gregory; Smith, L.
    Abstract: We develop a decentralized Bayesian model of college admissions with two ranked colleges, heterogeneous students and two realistic match frictions: students find it costly to apply to college, and college evaluations of their applications are uncertain. Students thus face a portfolio choice problem in their application decision, while colleges choose admissions standards that act like market-clearing prices. Enrollment at each college is affected by the standards at the other college through student portfolio reallocation. In equilibrium, student-college sorting may fail: weaker students sometimes apply more aggressively, and the weaker college might impose higher standards. Applying our framework, we analyze affirmative action, showing how it induces minority applicants to construct their application portfolios as if they were majority students of higher caliber.
    Date: 2014
  8. By: Gabor Kertesi (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences); Gabor Kezdi (Central European University and Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: Using unique data from Hungary, we assess the gap in standardized test scores between Roma and non-Roma students and show that this gap is comparable to the size of the Black-White test score gap in the United States in the 1980s. The ethnic test score gap in Hungary is nearly entirely explained by social differences in income, wealth and parental education, while ethnic factors do not play an important role. Using reduced-form regressions, we identify two major mediating mechanisms: first, the home environment of Roma children is less favorable for their cognitive development; second, Roma children face a lower quality educational environment. Comparing children with similar home environments from the same school and class, we find that the ethnic gap in test scores is insignificant. Ethnic differences in the home environment are explained by social differences, and ethnicity seems to play no additional role. While their disadvantage in accessing high-quality education is also strongly related to social differences, Roma students seem to face additional disadvantages as subjects of ethnic segregation. The results suggest that in addition to policies designed to alleviate poverty, well-designed interventions influencing these mechanisms can also improve the skill development of Roma and other disadvantaged children.
    Keywords: test score gap, Roma minority, Hungary
    JEL: I20 J15
    Date: 2014–01
  9. By: Nikhil Jha (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper analyzes the combined effect of school entry-age increase and the introduction of preparatory year (pre-school) on educational achievement using a difference-in-difference specification. Achievement is assessed using the score on national standardized tests across a range of subjects. The analysis uses the change in state policy across two states in Australia to estimate the effect. Policies were enacted in different years and affect different cohorts. I find positive effects for several subjects across different grades. Results are robust to falsification tests. However, cohorts starting school during the policy implementation period seem to have been adversely affected.
    Keywords: Educational achievement, human capital
    JEL: I28 J24
    Date: 2014–04
  10. By: Fryer, Roland Gerhard; Katz, Lawrence F.
    Abstract: This paper reviews the evidence on the efficacy of neighborhood and school interventions in improving the long-run outcomes of children growing up in poor families. We focus on studies exploiting exogenous sources of variation in neighborhoods and schools and which examine at least medium-term outcomes. Higher-quality neighborhoods improve family safety, adult subjective well-being and health, and girls' mental health. But they have no detectable impact on youth human capital, labor market outcomes, or risky behaviors. In contrast, higher-quality schools can improve children's academic achievement and can have longer-term positive impacts of increasing educational attainment and earnings and reducing incarceration and teen pregnancy.
    Date: 2013
  11. By: Kidd, Michael (Queensland University of Technology); O'Leary, Nigel C. (Swansea University); Sloane, Peter J. (Swansea University)
    Abstract: This paper uses HESA data from the Destination of Leavers from Higher Education survey 2003/04 to examine whether more mobile students in terms of choice of institution and location of employment earn more than those who are less mobile. The clear finding is that mobility is associated with superior earnings outcomes, but principally through mobility as it relates to students extending their horizon of job search. A bivariate probit analysis also confirms that there is a positive relationship between regional mobility both in the choice of attending university and the choice of where to take up employment.
    Keywords: location by residence, academic institution and employment, graduates, earnings
    JEL: J24 J31
    Date: 2014–07
  12. By: Bhuller, Manudeep (Statistics Norway); Mogstad, Magne (University of Chicago); Salvanes, Kjell G. (Norwegian School of Economics)
    Abstract: 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.
    Keywords: education premium, internal rate of return, life cycle earnings
    JEL: J24 J31
    Date: 2014–07
  13. By: Fang Yang; John Bailey Jones
    Abstract: We document the growth in higher education costs and tuition over the past 50 years. To explain these trends, we develop a general equilibrium model with skill- and sector-biased technical change. Finding the model’s parameters through a combination of estimation and calibration, we show that it can explain the rise in college costs between 1961 and 2009, along with the increase in college attainment and the change in the relative earnings of college graduates. The model predicts that if college costs had ceased to grow after 1961, enrollment in 2010 would be 3 to 6 percent higher.
  14. By: Divonzir Arthur Gusso; Paulo A. Meyer M.Nascimento
    Abstract: Este artigo analisa a evolução da educação terciária no Brasil de 2000 a 2012, com foco particularmente nas grandes áreas de ciências, matemática e computação e de engenharia, produção e construção. Para tanto, utiliza dados do Censo da Educação Superior para construir indicadores de demanda por e de oferta de cursos, destacando número de cursos, de vagas, de matrículas e de conclusões. A evolução desses indicadores é apresentada em separado para os sistemas público e privado e para as universidades e demais instituições de ensino superior. As tendências são observadas, ainda, para as instituições classificadas por Steiner (2005, 2006) a partir do tipo de diploma de graduação, do número de mestres e doutores titulados e das áreas dos diplomas conferidos, como universidades de pesquisa e doutorado. Questões relativas à qualidade também são discutidas, partindo tanto do desempenho observado no Exame Nacional de Desempenho de Estudantes (Enade), quanto dos fluxos de egressos das universidades de pesquisa e doutorado de Steiner (2005, 2006) e das instituições de elite de Carnoy et al. (2013). Busca-se, com esses esforços, delinear o contexto, a dimensão e o padrão de qualidade nos quais os profissionais técnico-científicos são formados no Brasil. Os resultados sugerem que o fluxo de conclusões nessas áreas tem se expandido ano a ano. Porém, além de ainda ser baixa em comparação a outros países, a formação de pessoal técnico-científico de nível superior no Brasil é concentrada em cursos e instituições de baixo desempenho. This paper analyses the evolution of tertiary education in Brazil from 2000 to 2012, with particular focus on Science, Technology, Engineering and Mathematics (STEM) fields. Administrative data are used to build indicators on the demand for courses, number of places, enrolments and graduates, and field concentration of the system output. The quality of the graduates is also briefly discussed, using as parameters the flows of new engineers graduating from top universities as well as the performance of Engineering graduating students on standardized tests administrated by the federal government. The evolution of such indicators is reported for: a) universities x other institutions offering tertiary education, classifying both types in publicly and privately-administrated; b) doctoral-granting institutions, as adapted by Steiner (2005, 2006) from the original Carnegie Classification of Institutions of Higher Education. Higher education institutions classified by Carnoy et al. (2013) as “elite institutions” are also considered as a separate group when quality matters are debated. The major objective of these efforts is to examine the context, dimension and quality of STEM human capital formation in Brazil from 2000 to 2012. Results suggest that the flow of new STEM graduates is expanding year after year in Brazil, but these numbers are still near to the ground in international standards and are concentrated on low-quality higher education institutions.
    Date: 2014–06
  15. By: Rao, T. V.; Saxena, Siddhartha Satish; Vijaya Sherry Chand; Narendran, Rajeshwari; Bharathan, Kandaswamy; Jajoo, B H
    Abstract: This paper seeks to answer the question, “In the Indian context, what insights can employers offer on the knowing, doing and being dimensions of the formation of an MBA graduate, that management education institutes can use to rebalance their curricula?” It uses the theoretical framework developed by Srikant Datar, David Garvin and Patrick Cullen in their 2010 study, Rethinking the MBA. The data for this paper came from in-depth interviews with 18 senior recruiters and a questionnaire survey of personnel from the human resource development function and line managers of 42 companies, 32 in the private sector and 10 in the public sector. The senior recruiters constituted a subset of the 42 respondents. Their ability to develop knowledge and analytical ability better seems to advantage the better institutions. However, on the creativity and the being dimensions (ethics, commitment to organization and learning attitude), MBAs may be more homogeneous. Perhaps this indicates an opportunity for the top-ranked institutes to focus more on the “Being” dimension. Indian employers clearly expect certain functional roles to be filled by fresh MBA graduates. What is expected by the employers in addition is a hands-on approach to work. This indicates that while rebalancing their curricula, business schools must retain a focus on their current strength in the “Knowing” dimension, while augmenting their stress on the “Doing” dimension. Regarding the skill-sets noted by the employers, there is a set that is directly within the scope of the traditional knowledge-skill objectives of an MBA program, like analytical skills. Traditional MBA programs in the top-ranked institutes are strong on preparing students for this set of skills. However, of the eight curricular gaps identified by Datar and his colleagues, only four—leadership, creativity and innovation, critical thinking and communication, and understanding the purpose of business—seem to be very clearly on the radars of employers. Specific skills and qualities that can fit under global perspective, integration skills, recognizing organizational realities, and understanding the limits of models and markets, seem to be under-emphasized. Perhaps B-Schools, at least the top ones, can build on these, thus creating a greater awareness about these as emerging areas of curricular focus. It is the “Being” dimension that seems to call for attention while making any attempt to rebalance the curriculum. Leadership means taking responsibility for implementing change, developing a certain depth as a person, willing to shed any stereotypes that one may have carried into the job, understanding the balance between a career and commitment to an organization, developing a commitment to practice, understanding one’s own limitations, and working out one’s expectations in a reasonable manner. In addition, developing an integrated perspective is an important aspect of developing the “Being” dimension. This is where the challenge for B-Schools lies. These qualities are not easy to develop in a classroom set-up, and call for more experiential methods of learning. B-Schools, by and large, are not as competent in these methodologies as they are in methods that develop analytical, instruction-based knowledge and skills. The qualities that the employers would like stressed fall mainly under three labels which can be directions for curricular change: Practice Orientation, Team Work and Perspective Building. Finally, we present a set of six guidelines that seem to be important from the employers’ perspective as a model for future curricular practice: Introduction of the curriculum through practice; Critical thinking and diagnosis; Integrative thinking; Capability for learning; Focus on a complex made up of Leadership, Team Player, Innovator, and Corporate Citizen; and Apprenticeship before award of the MBA degree.
  16. By: Drivas, Kyriakos; Economidou, Claire; Karamanis, Dimitris; Zank, Arleen
    Abstract: This paper exploits a particular facet of the US patent system, which thus far has been overlooked in the literature: the patent renewal fee scheme relating to switches from small to large entity status. Based on this observation, we are able to determine whether university patents are licensed over their enforceable lifecycle and at what point in time the licensing occurs. We find that while the funding source of patented inventions makes no difference to the propensity of an academic patent being licensed, federally sponsored patents are less likely to be licensed early compared to their non-federally funded counterparts.
    Keywords: university patents, renewal fees, licensing, technology transfer, large entity status, federal sponsorship
    JEL: H50 O31 O32 O38
    Date: 2014–07–21
  17. By: Clark, Brian (Duke University); Joubert, Clement (University of North Carolina, Chapel Hill); Maurel, Arnaud (Duke University)
    Abstract: In this paper we analyze career dynamics for the large share of U.S. workers who have more schooling than their peers in the same occupation. We use data from the NLSY79 combined with the CPS to analyze transitions into and out of overeducated employment, together with the corresponding effects on wages. Overeducation is a fairly persistent phenomenon at the aggregate and individual levels, with 66% of workers remaining overeducated after one year. Overeducation is not only more common, but also more persistent among blacks and low-AFQT individuals. Further, the hazard rate out of overeducation drops by about 60% during the first 5 years spent overeducated. However, the estimation of a mixed proportional hazard model suggests that this is attributable to selection on unobservables rather than true duration dependence. Finally, overeducation is associated with lower current as well as future wages, which points to the existence of scarring effects.
    Keywords: overeducation, mismatch
    JEL: J24 I21
    Date: 2014–07
  18. By: OECD
    Abstract: Education has one of the highest shares of innovative jobs for tertiary graduates of all sectors of the economy in Europe, and a higher proportion than in other public sector areas such as health and public administration. Innovation in knowledge or methods is the most common form of innovation, with education outperforming all sectors of the economy on this measure. Within education, higher education is much more innovative than the primary and secondary levels – and is one of the most innovative sectors of the economy in terms of innovation in knowledge or methods.
    Date: 2014–07
  19. By: Diane Whitmore Schanzenbach; Mary Zaki
    Abstract: School meals programs are the front line of defense against childhood hunger, and while the school lunch program is nearly universally available in U.S. public schools, the school breakfast program has lagged behind in terms of availability and participation. In this paper we use experimental data collected by the USDA to measure the impact of two popular policy innovations aimed at increasing access to the school breakfast program. The first, universal free school breakfast, provides a hot breakfast before school (typically served in the school’s cafeteria) to all students regardless of their income eligibility for free or reduced-price meals. The second is the Breakfast in the Classroom (BIC) program that provides free school breakfast to all children to be eaten in the classroom during the first few minutes of the school day. We find both policies increase the take-up rate of school breakfast, though much of this reflects shifting breakfast consumption from home to school or consumption of multiple breakfasts and relatively little of the increase is from students gaining access to breakfast. We find little evidence of overall improvements in child 24-hour nutritional intake, health, behavior or achievement, with some evidence of health and behavior improvements among specific subpopulations.
    JEL: I12 I21
    Date: 2014–07
  20. By: Almeida, Rita K. (World Bank); de Faria, Marta Lince (Católica Lisbon)
    Abstract: Skills shortages and skill mismatch are a pressing concern for policymakers in several developing countries, and in East Asia specifically. Providing on-the-job training can be an effective policy tool to shape the skills of the existent workforce to the specific needs of the firms. This paper explores a unique data set of matched employer-employee data for Malaysia and Thailand to estimate the wage return to on-the-job training in these two countries. Exploring propensity score matching estimates, we show that the average wage returns to on-the-job training are 7.7% for Malaysia and 4.5% for Thailand. Furthermore, we find evidence that the wage returns to on-the-job training are higher for males than for females in Malaysia and that, for both countries, returns are higher for workers with at least secondary education.
    Keywords: matched employer-employee data, wages, on-the-job training
    JEL: J24 J30
    Date: 2014–07
  21. By: Clara Cardone-Riportella (Department of Financial Economics and Accounting, Pablo de Olavide University); María José Casasola-Martinez (Business Administration Faculty, Carlos III University); Isabel Feito-Ruiz (Department of Business Administration, University of Leon)
    Abstract: This paper analyzes the impacts of gender and family business background on entrepreneurship intention (EI) and on start-up behavior (SUB) developed by the graduate students of a Spanish international online Master of Business Administration (OL-MBA) program. The main results show that coming from an entrepreneurial family increases entrepreneurial intention, and this result is reinforced when the OL-MBA student is female. Additionally, female students are more likely to engage in start-up behavior if she comes from an entrepreneurial family consistent with the argument that females develop more entrepreneurial skills and have less likely to become a family successor than males. However, this start-up behavior is reduced when female students receive entrepreneurial education or if they have children (dependency context). Also, other personal characteristics, such as non-risk-adverse personality, can motivate EI and SUB.
    Keywords: Postgraduate studies impact; Entrepreneurship education; Entrepreneurship intention; Start-up behavior; Gender; Family implications
    Date: 2014–07
  22. By: Daniele Checchi; Gianni De Fraja; Stefano Verzillo
    Abstract: We derive a theoretical model of effort in the presence of career concern based on the multi-unit all-pay auction, and closely inspired by the Italian academic market. In this model, the number of applicants, the number of new posts, and the relative importance of the determinants of promotion determine academics' effort. Because of the specific characteristics of Italian universities, where incentives operate only through promotion, and where all appointment panels are drawn from strictly separated and relatively narrow scientific sectors, the model fits well Italian academia, and we test it in a newly constructed dataset which collects the journal publications of all Italian academics working in universities. We find that individual researchers respond to incentives in the manner predicted by the theoretical model: more capable researchers respond to increases in the importance of the measurable determinants of promotion and in the competitiveness of the scientific sector by exerting more effort; less able researchers do the opposite.
    Keywords: Career concerns, Applied auction theory, Publications, Academic job market, Nepotism JEL Numbers: D44, I23, I21, M51
    Date: 2014–07
  23. By: Prettner, Klaus (Department of Economics); Strulik, Holger (Department of Business and Economics)
    Abstract: This study presents a novel theory on the interaction of social norms, fertility, education, and their joint impact on long-run economic development. The theory takes into account that sexual intercourse is utility enhancing and that the use of modern contraceptives potentially conflicts with prevailing social norms (religious beliefs). The theory motivates the existence of two steady states. At the traditional steady state, the economy stagnates, fertility is high, education is minimal, and the population sustains a norm according to which modern contraceptives are not used. At the modern steady state, the population has abandoned traditional beliefs, modern contraceptives are used, fertility is low and education and economic growth are high. Social dynamics explain why both equilibria are separated by a saddlepoint-equilibrium (a separatrix), i.e. why it is so hard to transit from the traditional regime to the modern regime. Enhancing the value of education is identified as a promising policy to encourage contraceptive use and to initiate the take-off to long-run growth.
    Keywords: Religion; fertility; sex; contraceptive use; education; economic growth
    JEL: I25 J10 O40 Z12
    Date: 2014–07–07
  24. By: Francesco Ferrante (University of Cassino, AlmaLaurea)
    Abstract: Human capital is invariably found to be an important explanatory variable of various proxies for well being (WB), i.e. income, happiness, job and life satisfaction, health status. Nevertheless, to date few systematic efforts have been made to explain its various and interconnected functions. The U-shaped age/SWB relation found by many empirical studies suggests that investigating the pattern of different measures of WB over people’s life cycles may yield important information and provide useful insights into the main mechanisms connecting human capital and WB. In this paper I contend that there are four such links. First, human capital improves decision making skills in different life domains. Second, it improves the skills and knowledge in doing things and enjoying life. Third, human capital shapes our identity/personality traits and, fourth, by doing so, it fuels our aspirations in different life domains. The first two effects can be expected to improve people’s performance and subjective well being. Building on Ferrante (2009), more ambiguous is the impact exerted by human capital through the joint action of people’s identity and aspirations. In this paper, I explore data drawn from the Survey on Household Income and Wealth (SHIW) conducted by the Bank of Italy (2008), containing rich information on people’s socioeconomic and educational backgrounds, educational and skill mismatches in the workplace and various measures of WB such as income, happiness, job satisfaction and health status. The tentative explanations for my empirical findings are: (a) people experience large mismatches in aspirations/expectations early in adult life; (d) the latter mismatches depend on education and are largely confined to the labour market; (c) the curvature of the U-shaped age/happiness relationship depends on the level of education. The suggested interpretation of this results is that education affects both people’s expectations and the way in which they react to unfulfilled aspirations.
    Keywords: aspirations, expectations, education, well being
    JEL: A13 D1 D60 H11 I2 J13 J24 I38
    Date: 2014–07
  25. By: Chris SAKELLARIOU (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, Singapore, 637332.); Fang ZHENG (Southwestern University of Finance and Economics, China)
    Abstract: This paper uses a new dataset, the 2009 Rural Urban Migration in China (RUMiC) to estimate returns to schooling in China using an instrumental variable (IV) methodology. After identifying a set of instruments, we conduct comprehensive validity and relevance testing of different combinations of instruments as well as robustness analysis of our estimates for rural to urban migrants and urban residents in China. We find that our estimates are in a fairly tight band for all four sub-samples examined (urban men, urban women, migrant men and migrant women). Estimates for men range from about 9.5% for urban workers to about 10-10.5% for migrant workers and are slightly higher than the corresponding estimates for women, which range from 7.5% for female urban workers to 8-9.5% for female migrant workers. Thus, private returns to education in urban China in 2009 were substantial and of similar magnitude to those for other transition countries, as well as to worldwide and developing country averages. We also find that the attenuation bias due to measurement error is generally large and more important in the migrant sample compared to the urban sample.
    Keywords: Returns to Schooling, Instrumental Variables, Rural-to-Urban Migrants, China
    JEL: I21
    Date: 2014–07
  26. By: Olivier Bargain (AMSE - Aix-Marseille School of Economics - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM), IZA - Institute for the Study of Labor); Jinan Zeidan (AMSE - Aix-Marseille School of Economics - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))
    Abstract: We investigate the effect of height on earnings, occupational choices and a subjective measure of well-being among Indonesian men. We explore the extent to which height captures the effects of human capital endowments set before entry on the labor market. Cognitive skills, co-determined with stature early in life, do not explain much of the height earnings premium directly. Yet, human capital more broadly, including cognition, educational attainment and other factors related to parental investments and background characteristics, explains around half of the height premium and does so through occupational sorting. Indeed, taller workers tend to have more education, and educated workers tend to work in more lucrative occupations that require brain and social skills, not brawn. The unexplained share of the height earnings premium reflects other labor market advantages of taller workers, including psycho-social dimensions. We also find a height premium in happiness, half of which simply accounts for the educational and earnings advantages of taller workers.
    Keywords: height; cognitive skills; physical skills; childhood conditions; earnings; occupation; happiness
    Date: 2014–07
    Abstract: Based on monthly observations of their labour market status in the first seven years after leaving education, this paper uses optimal matching sequence analysis to construct a typology of entry-patterns of Flemish secondary education graduates. Our main finding is that for a significant number of young people overeducation constitutes a persistent problem, affecting about half of the sample for nearly the full observation period. Investigating the risk factors involved, we find that some factors, such as having lower human capital endowments or facing job search constraints, enhance the risk of following disadvantageous trajectories. Having a lower reservation wage seems to make being persistently overeducated more likely. Yet, starting as ‘overeducated’ does not necessarily lead to being stuck in that state for the rest of the career. About 7% of our sample succeeds in entering an adequate position even after being overeducated for a relatively long period.
    Keywords: Underemployment, overqualification, optimal matching, youth labour market
    Date: 2014–03
  28. By: Swenson, David A.
    Abstract: This is a how-to manual for utilizing the IMPLAN impact analysis program when measuring the worth of public universities to regional economies. �This paper describes four approaches to measuring university economic values ranging from simple modification to the elements of value added to producing highly itemized "bill of goods" types of specifications. �It compares the four methods to one another as well as to a formal RIMS II analysis of the same institution by the U.S. BEA. �
    Date: 2014–06–05

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