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This paper shows mutually consistent evidence to support female advantage in education and disadvantage in labor markets observed in the Philippines. We set up a model that shows multiple Nash equilibria to explain schooling and labor market behaviors for females and males. Our evidence from unique sibling data of schooling and work history and from the Philippine Labor Force Survey support that family arrangement to tighten commitment between daughters and parents keeps a high level of schooling investments in daughters. Because wage penalty to females in labor markets means that education is relatively important as a determinant of their earnings, parental investments in their daughters' education has larger impacts on the income of their daughters than on their sons. Parents expect larger income shared from better-educated adult daughters. In contrast, males stay in an equilibrium, with low levels of schooling investment and income sharing. Our results also imply that the above institutional arrangement is stronger among poor families. (Contains 11 tables and 1 figure.)

This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work. (Contains 15 tables and 1 figure.)

This study investigates the incidence of over-education amongst recent Australian bachelor degree graduates and its effect on their earnings. We find that between 24% and 37% of graduates were over-educated shortly after course completion, with over-education most common amongst young females and least common amongst older females. Over-education rates vary markedly across major fields of study and appear to be associated with the relative demand for graduate labour. Overeducation was less common three years after course completion; however a nontrivial proportion of graduates remain over-educated. With regard to the effect of over-education on earnings, we find a notable age-related effect not reported in earlier studies. Young over-educated graduates were not penalised after unobserved heterogeneity had been addressed, whereas older over-educated graduates were at an earnings disadvantage relative to their well-matched peers. (Contains 6 tables.)

Evidence from industrial nations suggests that sibling composition is associated with children's educational attainment, particularly if parents face resource constraints. If sibling composition is associated with educational attainment, then those associations should be stronger in poor societies of developing nations. We use data from a pre-industrial society of native Amazonians in Bolivia and found that school-age (5-16) girls or boys with an additional older sibling, particularly an older brother, were less likely to enroll in school and had fewer years of completed schooling. Because older siblings affected the school attainment of younger siblings, older siblings lowered a child's academic skills. Unlike their peers in rich households, younger sisters in poor households were less likely to enroll in school if they had an older sibling. The results lend cross-cultural support to the hypothesis that resource constraint is associated with children's human capital accumulation. (Contains 1 figure and 6 tables.)

In this paper we analyze the role played by self-confidence, modeled as beliefs about one's ability, in shaping task choices. We propose a model in which fully rational agents exploit all the available information to update their beliefs using Bayes' rule, eventually learning their true type. We show that when the learning process does not converge quickly to the true ability level, small differences in initial confidence can result in diverging patterns of human capital accumulation between otherwise identical individuals. If differences in self-confidence are correlated with socio-economic background (as a large body of empirical literature suggests), self-confidence can be a channel through which education and earning inequalities perpetuate across generations. Our theory suggests that cognitive tests should take place as early as possible, in order to avoid that systematic differences in self-confidence among equally talented people lead to the emergence of gaps in the accumulation of human capital. (Contains 1 table and 4 figures.)

We develop a theory of human capital investment to study the effects of school quality on student choices of education, and to understand its effect on economic growth. In a dynamic general equilibrium closed economy, primary education is mandatory but there is an opportunity to continue to secondary education and beyond. High-quality education increases the returns to schooling, and hence the incentives to accumulate human capital. This is caused by two different channels: higher quality makes education accessible to more people (extensive margin), and once individuals decide to participate in higher education, higher-quality increases the investment made per individual (intensive margin). Furthermore, educational quality determines human capital composition and growth. Cross-country data evidence shows that the proposed channels are quantitatively important and that the effect of the quality and quantity of education on growth depends on the stage of development. (Contains 4 tables and 3 figures.)

Panel data on MBA graduates is used in an attempt to empirically distinguish between human capital and signaling models of education. The existence of employment observations prior to MBA enrollment allows for the control of unobserved ability or selection into MBA programs (through the use of individual fixed effects). In addition, variation in the amount of pre-MBA work experience allows for a test to distinguish between the models. In particular, a predominant signaling view is shown to predict smaller returns to the degree, the more pre-MBA work experience one has (controlling for total experience). Additionally, a unique feature of the data is that respondents were asked to report skills or abilities gained through their schooling, allowing us to determine the extent to which these purported skills are valued in the labor market. The combined evidence suggests that while human capital accumulation may contribute to the returns to an MBA, the majority of the returns is derived from the signaling/screening function of the degree. (Contains 4 tables.)

It is widely acknowledged that charter schools tend to have less experienced teachers and higher teacher turnover, but to date, little effort has been made to identify the contribution of faculty experience and retention to overall charter effectiveness. I do so using a twelve-year panel of charter and mainstream student achievement in North Carolina, focusing on the state's middle schools. Indeed, new charter schools had twice the rate of new teachers as new mainstream schools, as well as lower rates of faculty retention. Consistent with past research, I find significant returns to charter school age in terms of math and reading achievement, and I rule out the possibility that charter maturation was driven by higher-achieving students selecting into older schools. Faculty development explains, at best, a small share of the observed maturation over the initial years of charter schools' operation. Charters of all ages were relatively ineffective at improving math achievement, but were on par with mainstream schools at improving reading achievement by their sixth year of operation. (Contains 5 figures and 7 tables.)

There is a vast literature on the decision to enroll in higher education, but it focuses almost entirely on traditional students: 18 year olds graduating from high school. Yet less than half of students at degree-granting institutions are in the traditional 18-22 age range; nearly 40% are at least 25. This paper examines the enrollment behavior of persons 25 or older. We use data from a large-scale 1998 Department of Labor (DOL) policy demonstration in Greater Baltimore. By studying the behavior of older people we can examine factors such as age, earnings and marital status that vary little among the much-studied traditional students. Our results conform to the (rarely tested) predictions of human capital theory that age and opportunity costs are impediments to enrollment. We also find that where you live has a substantial impact on whether you return to school. (Contains 2 figures and 5 tables.)

We evaluate the contribution of investment on education to Sri Lanka's economic growth during the period 1959-2008. Physical capital, economic policy changes and the ethnic war are also evaluated due to their substantial importance. This study uses a framework encompassing both the neoclassical and endogenous growth model. The impact of education is assessed through a quality adjusted human capital stock measure. The returns to investment in education are positive but significantly lower than those found for other developing economies. Unlike the case of most developed economies, higher returns from investment in physical capital cannot produce any sizable positive externalities. The war has had the expected negative effect on output, and the results on economic policy changes are inconclusive. The results indicate a need for an appropriate strategy to allocate resources on education to improve its returns to the economy. (Contains 3 tables and 1 figure.)

Child labor is considered a key obstacle to reaching the international commitments of Education For All. However, the empirical evidence on the effects of child labor on educational attainments is mostly limited to static measurements. This paper assesses the consequences of child labor on schooling outcomes over time by employing a three-year longitudinal household data set from Nicaragua. The potential endogeneity of past child labor and school outcomes is addressed through instrumental variables. The time a child dedicates to work is found to have harmful consequences on subsequent educational achievements, even after controlling for previous human capital accumulation and other factors. In particular, working over three hours a day is associated with school failure in the medium term. A distinction by type of work shows that time spent in market production has larger negative effects on school outcomes than time spent performing household chores. (Contains 8 tables.)

A child care subsidy is one of the most effective policy instruments to facilitate low-income individuals' transition from welfare to work. Although previous studies consistently find that subsidy receipt is associated with increased employment among single mothers, there is currently no evidence on the influence of these benefits on the decision to invest in human capital. Using data from the Kindergarten cohort of the Early Childhood Longitudinal Study, this paper examines the impact of child care subsidy receipt on the likelihood of engaging in education and job training activities. We identify the impact of subsidy receipt by exploiting plausibly exogenous geographic variation in the distance that parents must travel from home in order to reach the nearest social service agency that administers the subsidy application process. Results suggest that child care subsidies encourage single mothers to engage in human capital investment. In particular, our instrumental variables estimates imply that subsidy receipt increases the likelihood that a single mother enrolls in courses at a school or university by 13 percentage points and participates in a job training program by 8 percentage points. (Contains 6 tables.)

This study investigates how school demographics and their interactions with policies affect the mobility behaviors of public school teachers with various human capital characteristics. Using data from North Carolina from 1995 to 2006, it finds that teachers' career stage and human capital investments dominate their decisions to leave public school teaching and school demographic characteristics play a dominant role in intra-system sorting. Schools serving at-risk children struggle to attract and retain teachers with desirable observable characteristics. We find evidence to suggest that across-the-board school-based pay-for-performance policies have small but significant associations with mobility decisions and appear to exacerbate inequities in the distribution of teacher qualifications. (Contains 5 tables and 7 figures.)

I investigate the effects of trust on human capital measured as average years of schooling in U.S. states using data from the 1980s and the 1990s. I find robust evidence that an increase in trust increases schooling across U.S. states. According the results of the seemingly unrelated regression estimation, a 25 percentage point increase in "Trust" increases the average years of schooling by approximately 1.5 months. This is not insignificant since more than $5000 increase in per capita income (in 2000 prices) is needed to have the same effect on schooling. (Contains 7 tables.)

In this paper, we study the impact of parental human capital background on ethnic educational gaps between second-generation immigrants using a large data set conducted in France in 2003. Estimates from censored random effect ordered Probit regressions show that the skills of immigrants explain in the most part, the ethnic educational gap between their children. Fluency in French and the length of their parents' stay in France also matter. The impact of the immigrants' education on the educational attainment of their children further depends on their country of origin, their place of schooling, and their proficiency in French. (Contains 3 tables and 1 figure.)

This paper challenges Hanushek and Woessmann's (2008) contention that the quality and not the quantity of schooling determines a nation's rate of economic growth. I first show that their statistical analysis is flawed. I then show that when a nation's average test scores and average schooling attainment are included in a national income model, both measures explain income differences, but schooling attainment has greater statistical significance. The high correlation between a nation's average schooling attainment, cumulative investment in schooling, and average tests scores indicates that average schooling attainment implicitly measures the quality as well as the quantity of schooling. (Contains 3 tables and 1 figure.)

In this paper, we utilise the British "National Child Development Study" to explore the determinants of career expectations formed at the age of 16. We analyse the influence of careers advice and resources at school on career expectations as well as the influence of education. In addition, we explore the accuracy of occupational expectations as compared to the occupation that the respondents subsequently become employed in. Throughout our findings, human capital and gender play a pivotal role in explaining career expectations as well as explaining the accuracy of the occupational forecast. Interestingly, the level of school resources available for careers guidance in terms of the number of teachers who are qualified to give careers advice and the amount of specific careers guidance training received by these teachers both have relatively small effects upon career expectations.

This paper attempts to examine how social trust influences human capital formation using prefectural level data in Japan. To this end, I constructed a proxy for social trust, based on the Japanese General Social Surveys. After controlling for socioeconomic factors, I found that social trust plays an important role in reducing the rate of long-term truancy in primary and junior high school. Results suggest that social trust improves educational quality. (Contains 5 tables and 2 figures.)

Learning disabled youth in the Child and Young Adult samples of the NLSY79 are "more" likely to graduate from high school than peers with the same measured cognitive ability, a difference that cannot be explained by differences in noncognitive skills, families, or school resources. Instead, I find that learning disabled students graduate from high school at higher rates than youth with the same cognitive abilities because of high school graduation policies that make it easier for learning disabled youth to obtain a high school diploma. The effects of these graduation policies are even more remarkable given that I find evidence that learning disabled youth have less "unmeasured" human capital than observationally equivalent youth as after high school they are less likely to be employed or continue on to college and earn less than their observationally equivalent non-learning disabled peers. (Contains 10 tables.)

The share of female teachers in the U.S. with an MA more than doubled between 1970 and 2000. This increase is puzzling, as it is much larger than that of other college-educated women, and it occurred over a period of declining teacher aptitude. I estimate the contribution of changes in teacher demographic characteristics, increases in the returns to an MA, and changes in teacher certification requirements to increases in teacher MA attainment rates. I find that the majority of the rise in attainment not attributable to secular trends and increases in the average age of teachers can be explained by increases in the returns to an MA among teachers. The increase in MA returns among teachers presents a second puzzle, as there is little evidence that master's degrees increase teacher productivity.

By considering heterogeneity in abilities and self-selection in educational choice, this paper adopts the heterogeneous human capital model to estimate rate of return to university education using data from the 1990 and 2000 Taiwan's Manpower Utilization Surveys. The Taiwan empirical study shows that significant heterogeneous return to education does exist, and that the educational choice was made according to the principle of comparative advantage. The estimated rates of return for attaining university were 19% and 15%, much higher than the average rate of return of 11.55 and 6.6%, for 1990 and 2000, respectively. The declining trend of return to university education may have been caused by the rapid expansion of the number of colleges and universities and the increasing supply of college graduates in the 1990s.

This paper examines the relationship between contemporary racial inequality of schooling and the black-white wage gap in the U.S. In particular I ask: what policies would be effective at reducing the black-white wage gap in the U.S.? In order to address this question, I develop a model of human capital accumulation in which agents differ by race. I calibrate the model to reflect the U.S. system of education financing since the mid-1950s, and find that more than half of the black-white wage gap in the U.S. in the early 1990s can be accounted for by differential human capital accumulation by race. This indicates an increased role for policy in addressing racial inequality in the U.S. The results of the policy experiments conducted in this paper indicate that a conditional cash transfer program and a policy of decreased reliance on local property tax revenue would be effective in reducing the black-white skill and wage gaps. (Contains 6 tables.)

This paper exploits discontinuities and randomness in the college admissions in Sweden in 1982, to estimate the economic return to college in the 1990s. At the time, college admissions were highly selective and applicants were ranked with respect to their formal merits. Admissions were given to those ranked higher than some threshold value. At the margin, applicants were sometimes randomly assigned to college. Exploiting this Regression-Discontinuity design, individuals who were admitted in 1982 are estimated to have about 0.20 years longer college education in 1996. However, the earnings effects for applicants at the margin of admission are insignificant. Controlling for the college admission determinants, the OLS-estimates of the return to college is 1.4 percent in 1991-96. The IV-estimates are not significantly different from the OLS counterparts. (Contains 4 figures and 6 tables.)

This paper estimates changes in the effects of educational attainment and college quality on three cohorts of students observed during the 1970s, 1980s, and 1990s. Consistent with most of the prior literature, I find that educational attainment and college quality raise earnings, and the magnitudes of these effects have increased over time. The new contributions of this paper are the following: (1) changes in these effects are disaggregated by sex, race, and parent's SES, and include estimates of effects on earnings, labor force participation, family formation, and civic participation; (2) evidence of larger increases in the effects of education on earnings and labor force participation for men, Blacks, and Hispanics; (3) declining effects of educational attainment on voter registration; and (4) increasing effects of college quality on delaying marriage and childbearing, particularly for males. (Contains 4 tables.)

Throughout Latin America, conditional cash transfer (CCT) programs play an important role in social policy. These programs aim to influence the accumulation of human capital, as well as reduce poverty. In terms of educational outcomes, a number of impact evaluation studies have shown that such programs have led to an increase in school enrollment, ensured regular school attendance and led to a reduction in child labor. Theoretically, such cash transfer programs may also be expected to exert a positive impact on students' test scores, but related empirical evidence is scarce. Accordingly, this paper evaluates the impact of a cash transfer program, the "Bono de Desarrollo Humano" of Ecuador, on students' cognitive achievements. The paper uses a regression discontinuity strategy to identify the impact of the program on second grade cognitive achievement. Regardless of the specification and sample used, we find no impact of the program on test scores, suggesting that attempts at building human capital, as measured by cognitive achievement, require additional and alternative interventions. (Contains 7 tables and 2 figures.)

In a recent paper, Garcia-Mainar and Montuenga-Gomez [Garcia-Mainar, I. & Montuenga-Gomez, V. M. (2005). Education returns of wage earners and self-employed workers: Portugal vs. Spain. "Economics of Education Review, 24"(2), 161-170] apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners and the self-employed in Portugal and in Spain. Our examination reveals several problems which relate to the validity and documentation of the instrumental variables, as well as the robustness of the results. (Contains 2 tables.)

Almost 900m adolescents and adults are illiterate in the developing world, yet most policy discussions focus on the educational circumstances of primary aged children. As a result non-formal educational programs for adolescents and adults are given very little support, and this group is virtually ignored in international agreements such as the millennium declaration. This article presents the first serious attempt at evaluating the impact of a non-formal education program. Results show significant learning achievement over the academic year, as well as strong development impacts of the program in non-learning dimensions of participants' lives. These positive impacts, plus the significantly lower unit costs and self-targeted nature of the program provide strong evidence that this type of program can be an important part of the poverty reduction and human capital enhancement strategy of developing countries with large illiterate adult populations. (Contains 1 figure and 8 tables.)

This paper uses the approach in the under/over education literature to analyze the extent of matching of educational level to occupational attainment among adult native born and foreign born men in the US, using the 2000 Census. Overeducation is found to be more common among recent labor market entrants, while undereducation is more likely among older workers. Among immigrants, greater pre-immigration labor market experience is associated with poorer job matches, presumably due to the less-than-perfect international transferability of foreign experience. A longer duration in the US, however, is associated with a lower probability of being overeducated and a greater probability of being undereducated. This is consistent with immigrants being favorably selected for occupational advancement but this effect becomes realized only after overcoming the disadvantages of the less-than-perfect international transferability of their pre-immigration skills. (Contains 5 tables and 6 footnotes.)

Administrative skill is essential to organizational effectiveness. Yet, few studies examine how human capital investments over a career affect selection into administration. We use panel data for economists to estimate the probability of choosing administration over a pure academic track. The results show that, while research-specific human capital reduces the probability of becoming an administrator, general human capital increases it. There are also inferior administrative opportunities for women that have not improved over time and variation in the role of human capital according to institutional research mission. Thus, our results suggest academic leaders are not merely born, but cultivated through their human capital investments. (Contains 3 tables and 16 notes.)

We decompose annual average years of schooling series for Portugal into different schooling levels series. By estimating a number of vector autoregressions, we provide measures of aggregate and disaggregate economic growth impacts of different education levels. Increasing education at all levels except tertiary has a positive and significant effect on growth. Investment in education does not significantly crowd out physical investment and average years of schooling semi-elasticities have comparable magnitude across primary and secondary levels. (Contains 5 tables.)

A proportion of employees are overqualified for their work. This generates a wage premium relative to the job but a penalty relative to the qualification, and is therefore, a puzzle for human capital theory. A part of this derives from the use of measures of time spent in education for the calculation of overqualification. Analysing data from four European countries, we split years of education into two components, one reflecting certification, another reflecting time. While a qualification higher than required mostly generates a wage premium, time does not. The result is that the combination of time with excess (or deficit) qualification may make overqualification either a major or a minor mismatch. The probability of either outcome varies with the institutional arrangements of different countries' educational systems. (Contains 4 tables.)

We explore the effect of bullying at school on the educational attainment of a sample of individuals drawn from the British National Child Development Study (NCDS). Our empirical findings suggest that school bullying has an adverse effect on human capital accumulation both at and beyond school. Moreover, the impact of bullying on educational attainment at age 16 is found to be similar in magnitude to class size effects. Furthermore, in contrast to class size effects, the adverse influence of bullying on educational attainment remains during adulthood. In addition, being bullied at school influences wages received during adulthood as well as indirectly influencing wages via educational attainment. (Contains 2 figures and 5 tables.)

Studies of college attrition typically assume that all attrition is permanent. We use data from the 1990/94 Beginning Postsecondary Survey to distinguish between long-term dropout and short-term stopout behavior in order to test that assumption. We find significant differences between those who stop out and those who drop out in the first year. Failure to recognize these differences biases the results of standard attrition models and hence may cause policy makers to pursue inappropriate policy initiatives or incorrectly target at-risk populations. Furthermore, the type of financial aid received is found to have a differential impact on stopout versus dropout probabilities.

In this article, in a context of wage equations with sample selection, we propose a novel interpretation of the partial effects linked to education as additional measures of returns to education that complement the traditional one, which is directly obtained from the estimation of the wage offer equation. Using European Household Panel data for Spain these partial effects were calculated. The results show that there are incentives in Spain for investing in education not only because it means an increase in wages but also because it raises the probability of obtaining any wage at all.

I investigate the role of education on health, using country-level data and the production frontier framework suggested by the World Health Organization (WHO) to assess performances of health care systems. I find that the impact of human capital on health is much smaller than suggested by the WHO frontier model, and the relationship exhibits diminishing return in the observed range of education. Taking into account the heterogeneity in this relationship generates a different ranking of the efficiency of health care systems internationally. This suggests that the method currently used by the WHO favors health care systems operating in countries that underinvested in education in the past.

Economists have identified a substantial adult wage premium attached to high school leadership activity. Unresolved is the extent to which it constitutes human capital acquisition or proxies for an "innate" unobserved skill. We document a determinant of high school leadership activity that is associated purely with school structure, rather than genetics or family background--a student's relative age. State-specific school entry cut-offs induce systematic within grade variation in student maturity, which in turn generates differences in leadership activity. We find that the relatively oldest students are 4-11 percent more likely to be high school leaders.

The paper provides new estimates of the perceived rates of return to higher education in Cyprus and compares them to previous estimates for the year 1994 in the same country. Both the elaborate and the short-cut methods are used in the estimation of rates of return. The estimated rates are entered as independent variables in logistic regression analysis in order to study the effect of economic considerations on the decision of secondary school students to pursue higher education. The findings show an increase in the perceived rate of return for both higher education and labour market entrants. In agreement with human capital theory, the mean rate of return to higher education expected by higher education candidates is considerably higher than that expected by labour market entrants. In two logistic regression models, the perceived rate of return to higher education, as estimated by both the elaborate and the short-cut methods, has a significant effect on the students' intention to pursue higher studies.

In this paper, we study the connection between growth and human capital in a convergence regression for the panel of Italian regions. We include measures of average primary, secondary and tertiary education. We find that increased education seems to contribute to growth only in the South. Decomposing total schooling into its three constituent parts, we find that only primary education in the South seems to be important, while tertiary education seems to have a negative impact on regional growth. Our main results are robust to the inclusion of additional variables in the regression analysis and the use of an IV estimator. Overall, this study suggests that Italian growth benefited from the elimination of illiteracy in the South, mainly in the 60s. It also suggests a possible relationship between the level of development of an economy and returns to different levels of education, with Italian regions still far from being able to capture the positive returns from higher levels of education.

This essay describes methodological approaches and pitfalls common to studies of the economic impact of colleges and universities. Such studies often claim local benefits that imply annualized rates of return on local investment exceeding 100 percent. We address problems in these studies pertaining to the specification of the counterfactual, the definition of the local area, the identification of "new" expenditures, the tendency to double-count economic impacts, the role of local taxes, and the omission of local spillover benefits from enhanced human capital created by higher education, and offer several suggestions for improvement. If these economic impact studies were conducted at the level of accuracy most institutions require of faculty research, their claims of local economic benefits would not be so preposterous, and, as a result, trust in and respect for higher education officials would be enhanced.

Recent economic research has investigated the extent to which involvement in school-sponsored clubs and sports constitutes human capital investment. Through instrumental variables, the existing literature focuses on identifying long-term impacts in terms of educational attainment and wages. Instead, I use a fixed effects strategy to test whether activity participation provides an immediate return to student learning. Independent of individual ability, I find that athletic participation is associated with a 2 percent increase in math and science test scores. Club participation is associated with a 1 percent increase in math test scores. Finally, involvement in either type of activity is associated with a 5 percent increase in Bachelor's degree attainment expectations.

Among linguistic minorities of industrial nations proficiency speaking the dominant national language increases earnings and wages, but do similar results apply to autarkic linguistic minorities of developing nations? We contribute to studies of the returns to language skills by applying the human-capital approach to a society of hunters, gatherers, and farmers in the Bolivian Amazon (Tsimane'). We use a panel consisting of five consecutive quarters to: (a) estimate the returns to language skills while controlling for schooling, math and writing skills, and other confounders and (b) explore the paths through which language skills might affect earnings. Fluent speakers of Spanish and the local language earned 36.9-46.9% more than monolingual speakers of the local language. Moderate fluency in Spanish bore no strong association with earnings. Spanish-Tsimane' bilingualism bore a positive association with earnings partly because bilingualism bore a positive association with credit access, use of modern production technologies, and labor productivity.

This paper analyses the relation between two important aspects of human capital: education and health. The contribution of our paper to the literature is three-fold: some further tests for causality in the relation between education and health are provided; it is tested whether results are affected by scale of reference bias and unobserved heterogeneity; and the results are used to calculate the health returns to education. We use data from a large survey for the Netherlands to estimate the education effects on health. Calculated at the average value of GDP per capita, the implied health returns to education are 1.3-5.8%. We further test for causality in the relation between education and health and for the effects of scale of reference bias and unobserved heterogeneity. None of these appear to affect our conclusions.

Most of the studies that account for the endogeneity bias when estimating the returns to schooling assume that the relationship between education and earnings is linear. Studies that assume the latter relationship to be non-linear simply ignore the endogeneity bias. Moreover, they either assume an ad-hoc non-linear relationship or argue that non-linearities are due to sheepskin effects. The approach I adopt in this paper allows estimation of the returns to years of schooling without assuming any explicit form of non-linearity while accounting for the endogeneity of education. The results suggest (i) endogeneity is indeed a crucial issue, (ii) there are sharp non-linearities which do not seem to be only due to certification effects and (iii) it is important to account for the impact of education on the returns to other observable characteristics such as age and seniority.

Rapid economic growth and improving living standards have benefited almost all regions of the world since the industrial revolution. Africa stands out as one regional exception. While several factors such as civil wars and rampant corruption have been associated with poor economic performance of the African region in the international community, the main focus of this research is to explore the role that human capital should play in improving the region's economic productivity. The study identifies the two-way links between human resource development produced by formal schooling and economic growth, measured in per capita terms, and between investment in physical capital and growth. It then estimates this three-equation structural system by two stage least squares (2SLS). The study concludes that the sources of labor productivity growth in the medium term in African nations are high investment in physical capital and in human capital. This is consistent with the hypothesis that both human and physical capital investments are necessary if Africa is to attain industrial development. The hypothesis that per capita growth is a determinant in turn of investment in education is consistent with the ordinary least squares and 2SLS estimates, implying a two-way causal flow. Also confirmed is the hypothesis that human resource development is a determinant of investment in physical capital, which contributes significantly to per capita growth in the next round.

Occupational difference by gender is a key feature of the labor market. While this is less true of college graduates than other groups, even among them men and women are concentrated in different occupations. While differences in occupations for college graduates are often attributed to college major, few tests of this hypothesis have been conducted. Using the National Center for Education Statistics Baccalaureate and Beyond Longitudinal Study 1993/94, this paper explores the role of gender differences in college major in accounting for occupational differences in first-jobs among recent college graduates. Key results show that gender differences in college major and selected job choice variables explain a significant portion of gender differences in engineering/computer, medical, teaching, and service occupations. Gender differences in the returns to these factors account for much of gender differences in clerical, management, labor, and service occupations. If women had the same returns to factors as men, occupational differences would be diminished by half.

Alcohol abuse and truancy are two widespread problems among the adolescent Spanish population. Given the negative consequences of both behaviours for human capital acquiring and their origin in adolescence, our study lies in analysing the relationship between these risk behaviours. From a methodological point of view, our contribution consists of considering unobserved factors that influence both alcohol abuse and truancy, that is to say, to test if there are individual or social factors that orient the adolescent to take both decisions. Given the nature of the data, we consider this relation by using a bivariate negative binomial model, which is estimated for a representative sample of the school population in Spain in 1996, 1998 and 2000. The results confirm the existence of these unobserved factors underlying the decisions to drink alcohol in excess and to play truant. The results also reveal the importance of the family environment in the truant-behaviour of the adolescent, as well as the usefulness of being a member of a social association and information campaigns about drugs in the reduction of alcohol abuse among adolescents.

The gradualist approach to economic transition in Belarus would contribute to form the a priori expectation that the rate of return to education is low and the earnings profile by work experience flat, like they supposedly were under central planning. However, the first available estimates of Mincerian earnings equations based on the Belarusian Household Survey on Incomes and Expenditure suggest that the skill payoff was high in 1996, at about 10.1% per year, and stable. The return to 1 year of work experience is also high at 5%. This result maintains also after controlling for sample selection bias, despite a general reduction in the annual rate of return to education by about 20-30%. Though, it is ambiguous whether the high-skill payoff is the consequence of market forces coming into play or of policy decisions, considering the pervasive role of the state in the process of wage determination.

We study whether the combined significant reduction in the pupil-teacher ratio and increase in parental education observed in Italy between the end of the second World War and the end of the 1980s have had a significant impact on the educational attainment and the labor market returns of a representative sample of Italians born between 1941 and 1970. We find that the lower pupil-teacher ratio is positively correlated with higher educational attainment, but that the overall improvement of parental education has had an even stronger impact on attainment. We also find that the positive impact of better school quality on educational attainment and returns to education has been particularly significant for the individuals born in regions and cohorts with poorer family background. Parental education has had asymmetric effects, positive on attainment and negative on school returns. Better school quality has also had asymmetric effects on the returns to education, positive for individuals with poor family background and negative for individuals born in regions and cohorts with relatively high parental education. Our evidence suggests that better school quality, measured by a lower pupil-teacher ratio, is a technical substitute to parental education in the production of individual human capital. When school quality and family background are substitutes, an increase of public resources invested in education can be used to reduce the differences induced by parental education.

In this study, we explore the value of personality characteristics in explaining success in labor market entry with a sample of graduates in economics from Maastricht University (the Netherlands). Specifically, the paper addresses the following twofold research question: does personality explain labor market outcomes, and how much weight does this 'generic' factor have compared to traditional human capital and individual preference variables such as study results, study field and demographic characteristics? Personality is measured both by separate indicators for traits as well as by the so-called 'profiles', based on combinations of these indicators. The results show that both measurement methods reveal significant personality effects, which are independent from the effects of traditional human capital variables, such as grade point averages in the academic program, and work experience. A key finding is that both types of factors have their own and independent effect on labor market outcomes.