Does formal education for older workers increase earnings?: Evidence based on rich data and long-term follow-up

Governments in Europe, Canada and the USA have expressed an ambition to stimulate education of older. In this paper, we analyse if there are effects on annual earnings of formal education for participants aged 42–55 at the time of enrolment in 1994–95. The analysis explores longitudinal population r...

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Bibliographic Details
Published in:Labour (Rome, Italy) Italy), 2014-06, Vol.28 (2), p.163-189
Main Authors: Stenberg, Anders, Luna, Xavier de, Westerlund, Olle
Format: Article
Language:English
Subjects:
Adult education
Berufsverlauf
Bildungsertrag
C21
Canada
Children
Dritter Bildungsweg
Earnings
Economics
Education
Einkommenseffekt
Erwachsenenbildung
Estimation
Europe
Gender differences
Government Expenditures
H52
H75
Health
Hochschulbildung
Human capital
I28
Income
Labour market
Lohnentwicklung
Longitudinal studies
Marginality
nationalekonomi
Older workers
Schweden
Sekundarbereich
Sex
Studies
U.S.A
Workers
Zweiter Bildungsweg
Älterer Arbeitnehmer
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Summary:Governments in Europe, Canada and the USA have expressed an ambition to stimulate education of older. In this paper, we analyse if there are effects on annual earnings of formal education for participants aged 42–55 at the time of enrolment in 1994–95. The analysis explores longitudinal population register data stretching from 1982 to 2007. The method used is difference‐in‐differences propensity score matching based on a rich set of covariates, including indicators of health and labor market marginalization. Our findings underline the importance of long follow up periods and imply positive effects for women, especially so for women with children, and no significant average earnings effects for men. These results differ from earlier studies but are stable to several alternative assumptions regarding unobservable characteristics. Data further indicate that the gender gap in our estimates may stem from differences in underlying reasons for enrolment.
ISSN:1467-9914
1121-7081
1467-9914
DOI:10.1111/labr.12030