Abstract
This paper looks at the joint impact of labour market risk and selection into employment on returns to education estimates. The risk-adjusted returns to both high school and college for males are larger than unadjusted returns. For females, risk leads to an increase in returns to high school but to a decrease in the returns to college while correcting for selection into employment has large effects for females. The results suggest that failure to account for risk and selection into employment when calculating returns to education leads to biased estimates.
| Original language | English |
|---|---|
| Pages (from-to) | 472-487 |
| Number of pages | 16 |
| Journal | Education Economics |
| Volume | 27 |
| Issue number | 5 |
| Early online date | 10 Jul 2019 |
| DOIs | |
| Publication status | Published - 3 Sept 2019 |
Keywords
- Returns to education
- unemployment risk
- wage risk
ASJC Scopus subject areas
- Education
- Economics and Econometrics
Access to Document
- Risk_adjusted_Returns_Delaney.pdf
This is an Accepted Manuscript of an article published by Taylor & Francis in Education Economics on 10/07/2019, available online: http://www.tandfonline.com/10.1080/09645292.2019.1639625