Returns to basic skills in Central & Eastern Europe : a semi parametric approach

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Title: Returns to basic skills in Central & Eastern Europe : a semi parametric approach
Authors: Denny, Kevin
Doyle, Orla
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Date: 6-Apr-2005
Abstract: This paper uses semi-parametric econometric techniques to investigate the relationship between basic skills and earning in three post-communist countries: the Czech Republic, Hungary and Slovenia using the IALS dataset. While the large increases in the returns to education in the new market economies has been well documented in the literature, no study to date has examined the impact of basic skills and schooling on income. Estimating a Mincer human capital model we find that including a measure of basic skills reduces the returns to education. In addition, using a partial linear model in which log earnings is linear in schooling, but is an arbitrary function of basic skills, we find that this relationship is not well described by the common assumption of linearity at the tails of the distribution.
Type of material: Working Paper
Publisher: UCD Geary Institute
University College Dublin; School of Economics
Copyright (published version): Geary Institute
Keywords: Earnings;Education;Basic skills;Transition
Subject LCSH: Fundamental education--Europe, Eastern
Wages--Europe, Eastern
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers
Geary Institute Research Collection
Economics Working Papers & Policy Papers

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