This study presents estimates of returns to post-secondary education
and wage differentials among graduates fromdifferent secondary schools
in Germany. I use an empirical model that captures the basic features of
the German education system. It controls for selection into post-secondary
education and treats latter as endogenous in the wage equation. My
results show that OLS estimates are severely biased. The direction of
the bias depends on the secondary school type. Annual returns to
post-secondary ...
This study presents estimates of returns to post-secondary education
and wage differentials among graduates fromdifferent secondary schools
in Germany. I use an empirical model that captures the basic features of
the German education system. It controls for selection into post-secondary
education and treats latter as endogenous in the wage equation. My
results show that OLS estimates are severely biased. The direction of
the bias depends on the secondary school type. Annual returns to
post-secondary education differ significantly: they are eight times
higher for graduates from the highest secondary school than for graduates
from the lowest secondary school.
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