Returns to Education in the Context of Higher Education Expansion

TY - CHAP

T1 - Returns to Education in the Context of Higher Education Expansion

AU - McKenzie, Tom

AU - Xu, Lei

AU - Zhu, Yu

N1 - Publisher Copyright: © Maarten H.J. Wolbers and Dieter Verhaest 2025.

PY - 2025/1/9

Y1 - 2025/1/9

N2 - This chapter aims to provide an updated but concise survey of progress in recent research on gross monetary returns to years of schooling, as measured through Mincer earnings (wage) equation estimates. After covering the average returns to years of schooling, which implicitly assumes homogeneous quality, we focus more on the empirical evidence of heterogeneous returns by prior attainment, socio-economic status (SES), ability, and post-compulsory educational choices. Motivated by the substantial expansion in higher education in virtually all countries in recent decades, we also evaluate studies that explore the returns for marginal students who barely pass some predefined admission threshold. Despite the increases in compulsory schooling and rapid expansion of higher education, the returns to post-compulsory education remain significantly positive for most people, but with substantial variation by subject and institution type, as well as by individual characteristics and family background.

AB - This chapter aims to provide an updated but concise survey of progress in recent research on gross monetary returns to years of schooling, as measured through Mincer earnings (wage) equation estimates. After covering the average returns to years of schooling, which implicitly assumes homogeneous quality, we focus more on the empirical evidence of heterogeneous returns by prior attainment, socio-economic status (SES), ability, and post-compulsory educational choices. Motivated by the substantial expansion in higher education in virtually all countries in recent decades, we also evaluate studies that explore the returns for marginal students who barely pass some predefined admission threshold. Despite the increases in compulsory schooling and rapid expansion of higher education, the returns to post-compulsory education remain significantly positive for most people, but with substantial variation by subject and institution type, as well as by individual characteristics and family background.

KW - Returns to Education

KW - Higher Education

KW - Marginal Students

KW - Higher education

KW - Marginal students

KW - Returns to education

UR - https://www.scopus.com/pages/publications/105001772081

U2 - 10.4337/9781035309917.00007

DO - 10.4337/9781035309917.00007

M3 - Chapter (peer-reviewed)

SN - 9781035309900

SP - 16

EP - 36

BT - Handbook of Education and Work

A2 - Verhaest, Dieter

A2 - Wolbers, Maarten

PB - Edward Elgar Publishing

ER -