Politická ekonomie
Politická ekonomie
Prague Economic Papers
University of Economics, Prague

Prague Economic Papers Vol. 28 No. 1

Returns to Tertiary Education in Western and Eastern Europe

DOI: https://doi.org/10.18267/j.pep.686

[full text (PDF)]

Martina Mysíková, Jiří Večerník

In the 1990s, the transition countries in Central and Eastern Europe witnessed an upward trend in returns to education, unlike in Western European countries. This upward trend led to much higher returns than in what was observed in the communist period or compared to the West. The surveys EU-SILC collected since 2005 show that although returns to tertiary education were converging across Europe, there is still a big difference between East and West, with returns considerably higher in the East. Panel analysis reveals also substantial differences in the factors behind returns to tertiary education in the East and the West. The assumed negative relationship between the share of tertiary-educated workers in the working-age population and the returns to tertiary education were confirmed only in the West. The job vacancy rate has a significant negative impact on returns to tertiary education only in the East. While in the West the labour market seems to react more to labour supply, in the East labour demand plays a more important role.

Keywords: returns to education, tertiary education, Western and Eastern Europe

JEL Classification: D31, I26, J31, P20


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