Does education raise productivity, or just reflect it?

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Show simple item record Chevalier, Arnaud Harmon, Colm Walker, Ian Zhu, Yu 2009-04-28T14:12:04Z 2009-04-28T14:12:04Z Institute for the Study of Social Change en 2002-12-23
dc.description.abstract It is clear that education has an important effect on wages paid in the labour market However it not clear whether this is due to the role that education plays in raising the productivity of workers (the human capital explanation) or whether education simply reflects the ability of the worker (through a signalling role). In this paper we describe and implement, using a variety of UK datasets, a number of tests from the existing literature for discriminating between the two explanations. We find little support for signalling ideas in these tests. However, we have severe reservations about these results because our doubts about the power of these tests and the appropriateness of the data. We propose an alternative test, based on the response of some individuals to a change in education incentives offered to other individuals caused by the changes in the minimum school leaving age in the seventies. Using this idea we find that data in the UK appears to strongly support the human capital explanation. en
dc.format.extent 295652 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. Institute for the Study of Social Change (Geary Institute) en
dc.relation.ispartofseries ISSC Discussion Paper Series en
dc.relation.ispartofseries 2003/01 en
dc.relation.uri Does education raise productivity, or just reflect it? (January 2003) en
dc.relation.uri en
dc.subject Human capital en
dc.subject Signalling en
dc.subject Screening en
dc.subject.classification I20 en
dc.subject.classification J30 en
dc.subject.lcsh Labor productivity--Effect of education on en
dc.subject.lcsh Education--Economic aspects en
dc.subject.lcsh Wages--Effect of education on en
dc.title Does education raise productivity, or just reflect it? en
dc.type Working Paper en
dc.internal.authorurl Colm Harmon (web page) en
dc.internal.authorurl en
dc.internal.authorid UCD0009 en
dc.internal.availability Full text available en
dc.internal.webversions en
dc.status Not peer reviewed en
dc.neeo.contributor Chevalier|Arnaud|aut|
dc.neeo.contributor Harmon|Colm|aut|UCD0009
dc.neeo.contributor Walker|Ian|aut|
dc.neeo.contributor Zhu|Yu|aut|

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