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Earnings, schooling, and economic reform : econometric evidence from Hungary (1986-2004) (Inglês)

How does the relationship between earnings and schooling change with the introduction of comprehensive economic reform? This article sheds light on this question using a unique data set and procedure to reduce sample-selection bias. The evidence is from consistently coded, nonretrospective data for about 4 million Hungarian wage earners. Returns to skill increased 75 percent from 1986 to 2004 (that is, during the period stretching from communism to full membership in the European Union). The winners were those with a college or university education and those employed in the services sector (which here excludes those in public services). The reform losers were those in construction and agriculture, those with only a primary or vocational education (who experienced a decline in returns to their education), and younger workers who acquired most of their education after the main reforms were in place.


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    Campos, Nauro Jolliffe, Dean

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    Europa e Ásia Central,

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    Earnings, schooling, and economic reform : econometric evidence from Hungary (1986-2004)

  • Palavras-chave

    wage earner;returns to schooling;Labor Market;Transition economies;transition economy;female labor force participation rates;return to education;estimation of equation;years of schooling;labor force survey data;public expenditure on education;abstracts of current studies;liberalization of labor markets;standard error;point estimate;market economy;types of school;gender wage gap;demographic composition;economic reform;school quality;survey instrument;Young Workers;distribution of wage;labor market experience;quality of education;planned economy;monthly wage;choice of variables;national longitudinal survey;labor supply changes;centrally planned economy;rates of return;labor market reform;estimated wage premium;human capital investment;department of economics;labor market participation;total public expenditure;gross domestic product;expenditures on education;register unemployment rate;economies in transition;dependent on markets;return to investment;labor market institution;difference in returns;labor market characteristic;economics of transition;skills of worker;difference in wages;government education expenditure;human capital accumulation;wage equation;labor economics;primary schooling;transition period;school type;econometric evidence;empirical evidence;university education;



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