Volume 10, Issue 38 (12-2019)
jemr 2019, 10(38): 153-180 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Mehrara M, elahi G. The Effect of Education on Labor Wages in Iranian Urban Households Based on Quantile Regression. jemr 2019; 10 (38) :153-180
URL: http://jemr.khu.ac.ir/article-1-1930-en.html
URL: http://jemr.khu.ac.ir/article-1-1930-en.html
1- University of Tehran , mmehrara@ut.ac.ir
2- University of Tehran
2- University of Tehran
Abstract: (4447 Views)
The purpose of this article is to examine the impact of education and work experience on earning. For this purpose, Mincer’s wage equation, quantile regression estimation method and the microdata from Iranian survey of household income and expenses in 2016 have been used. Estimation results show that education returns are positive in all income quantiles, and education in lower-income quantiles has a stronger positive effect than in higher-income quantiles. Also, the average experience have a positive effect on the earnings of individuals, with a stronger effects in low-income quantiles than high-income quantiles. Gender coefficients show that female earnings in all income quantiles are much lower than males, but this negative effect was much bigger in lower-income quantiles, implying gender-based discrimination against women in low-income quantiles. According to Machado and Mata's decomposition, gender discrimination (against females) was estimated, -30% in the first decile, and -4.5% in the ninth decile. Women's education has narrowed the gap somewhat on behalf of women. According to the results, education efficiency in Iran is far lower than many other countries in the world. Therefore, it is necessary to reform educational structures, in particular to guide them towards labor market needs and economic benefits.
Type of Study: Applicable |
Subject:
سایر
Received: 2019/10/12 | Accepted: 2020/03/8 | Published: 2020/04/23
Received: 2019/10/12 | Accepted: 2020/03/8 | Published: 2020/04/23
References
1. Afshari, Z. (1998). The effect of higher education on earnings in Iran employees by using the Mincer model. Journal of research and planning on higher education, 17, 59-78. (In Persian)
2. Bhatti, S. (2013). Estimation of the Mincerian wage model and different econometrics issues. PHD dissertation. University de Bourgogne.
3. Chiswick, B. R. (2003). Jacob Mincer, experience and the distribution of earning. IZA Discussion paper. No. 87. [DOI:10.1023/B:REHO.0000004794.43782.55]
4. Depcken, C., Chiseni, C. & Ita, E. (2019). Returns to Education in South Africa: Evidence from the National Income Dynamics Study. Zagreb International Review of Economics & Business, 22(1), 1-12. [DOI:10.2478/zireb-2019-0009]
5. Dezhpasand, F., Arabmazar, A. & Seyfi, Shapur. (2016). Study the impact of education and experience on earning. Journal of economics and modeling. 7(25), 75-101. (In Persian)
6. Eide, E. R. & Showalter, M. H. (2010). Human capital, in economics of education, Edited by: Dominic J. Brewer and Patrick J. McEwan, Oxford, Academic Press, 27-32. [DOI:10.1016/B978-0-08-044894-7.01213-6]
7. Emadzadeh, M., Samadpur, N., Ranjbar, H. & Firuzeh, A. (2014). The Effect of Education on health in Iran: A Production Function Approach. Journal of economic modeling research, 4(15), 147-178. (In Persian)
8. Falahati, A., Fattahi, S. & Goli, S. (2017). Demand for education and estimating the share of education in income inequality. Journal of quantity economics, 11(37), 23-44. (In Persian)
9. Gunawan, E. (2012) International Journal of Social Sciences and Humanity Studies, 4(1), 1309-8063 (Online)
10. Harmon, C., Hogan, V. & Walker, I. (2002). "Dispersion in the economic return to schooling". Labor economics, 10(2), 205-214. [DOI:10.1016/S0927-5371(03)00003-4]
11. Jannati Moshkani, A., Sameti, m., Khosh akhlagh, R., Esfahani, R. & Emadzadeh, M. (2011). The Impact of Education Costs on Human Capital and Economic Growth Using Computable General Equilibrium Model. Journal of economic modeling research, 2(5), 103-130. (In Persian)
12. Keshavarz, G. & Javaheri, M. (2017). overeducation and Wages in the Labor Market: Evidence from Iranian microeconomics Data. Journal of economic research, 52(2), 345-368. (In Persian)
13. Mahdavi, A. & Piruzrahi, Z. (2018). Assessment of private return rate of postgraduate education in Iran using multilevel models. Journal of research and planning on higher education, 4, 145-162. (In Persian)
14. Mincer, J. (1960). "Investment in human capital and personal income distribution". Journal of political economy, 66, 281-302. [DOI:10.1086/258055]
15. Mincer, J. (1974). "Schooling, experience and earning". Columbia UN. Press, New York.
16. Mook, P., Patrinos, H. & Venkataraman, M. (1999). Education and Earnings in a transition economy the case of Vietnam. Economics of education review, 22(5), 503-510. [DOI:10.1016/S0272-7757(03)00039-6]
17. Naderi, A., Rameshi, R. & Nami, K. (2013). Rates of Education Efficiency in Iran by Gender of Employed Graduates and Type of Education. Journal of educational planning studies, 5, 30-42. (In Persian)
18. Psacharopoulos, G. & Patrinos, H. (2018). Returns to Investment in Education: A Decennial Review of the Global Literature. World Bank, policy research working papers, 2018-04. [DOI:10.1596/1813-9450-8402]
19. Psacharopoulos, G. & Patrinos, H. A. (2004). Returns to investment in education: A further update. Education economics, 12(2), 111-134. [DOI:10.1080/0964529042000239140]
20. Romele, L. & Purgailis, M. (2013). Estimation of private and social rates of return to investments in education in Lativa. European Integration studies, 7, 51-59. [DOI:10.5755/j01.eis.0.7.5088]
21. Romele, L. & Purgailis, M. (2013). Estimation of private and social rates of return to investments in education in Latvia. European Integration Studies, 7, 51-59. [DOI:10.5755/j01.eis.0.7.5088]
22. Rossi, A. & Hersch, J. (2008). Double your major, double your return?. Journal of economics of education review, 27, 375-386. [DOI:10.1016/j.econedurev.2007.03.001]
23. Schultz, T. (1960), Capital formation by education. Journal of political Economy, 68(6), 571-583. [DOI:10.1086/258393]
24. Stevens, H., Kurlaender, M. & Grosz, M. (2019). Career Technical Education and Labor Market Outcomes Evidence from California Community College, 54(4), 986-1026 [DOI:10.3368/jhr.54.4.1015.7449R2]
Send email to the article author
| Rights and permissions | |
 | This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
