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Private returns to human capital over transition: A case study of Belarus
ARTICLE

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Economics of Education Review Volume 25, Number 1 ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

The gradualist approach to economic transition in Belarus would contribute to form the a priori expectation that the rate of return to education is low and the earnings profile by work experience flat, like they supposedly were under central planning. However, the first available estimates of Mincerian earnings equations based on the Belarusian Household Survey on Incomes and Expenditure suggest that the skill payoff was high in 1996, at about 10.1% per year, and stable. The return to 1 year of work experience is also high at 5%. This result maintains also after controlling for sample selection bias, despite a general reduction in the annual rate of return to education by about 20–30%. Though, it is ambiguous whether the high-skill payoff is the consequence of market forces coming into play or of policy decisions, considering the pervasive role of the state in the process of wage determination.

Citation

Pastore, F. & Verashchagina, A. Private returns to human capital over transition: A case study of Belarus. Economics of Education Review, 25(1), 91-107. Elsevier Ltd. Retrieved February 20, 2020 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/j.econedurev.2004.11.003

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