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This paper challenges the predominant conceptualization of the wage structure as gender-neutral, emphasizing the contribution that this makes to the gender wage gap. Unlike most decomposition analyses, which concentrated on gender differences in productivity-enhancing characteristics (the 'explained' portion), we concentrate on the 'wage structure' (the 'unexplained' portion), which can be defined as the market returns to productivity-enhancing characteristics. These returns are commonly considered a reflection of non-gendered economic forces of supply and demand, and gender differences in these returns are attributed to market failure or measurement error. Using PSID data on working-age employees from 1980 to 2010, we examine gender differences in returns to education and work experience in the U.S. labor market. Based on a threefold decomposition, we estimate the contribution of these differences to the overall pay gap. The results show that men's returns to education and work experience are higher than women's; and that in contrast to the well-documented trend of narrowing gender gaps in skills and earnings, the gaps in returns increase over time in men's favor. Furthermore, the existing gender differences in returns to skills explain a much larger proportion of the gender wage gap than differences in levels of education and experience between men and women. The paper discusses the mechanisms underlying these findings.

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Theories of job assignment suggest that employers give a lot of weight to achieved educational credentials. But what if credentials are missing? We theorize how college non-completion affects the hiring chances, identify its causal effect in different labor market segments, and assess which factors facilitate labor market entry for dropouts. Based on a simulated hiring process with N = 1382 German employers who rated more than 10,000 fictitious CVs, we show that college non-completion is not a scar per se, but rather depends on the educational attainment of the competitors who constitute the labor queue, and on the degree of occupational closure which varies on a granular level between firms that hire for the same occupations. We also find that employers, when rating dropouts, attach most value to CV attributes that signal a high stock of job-relevant skills, such as good performance during college or an occupation-specific internship. We conclude by discussing implications of our work for research on the labor market integration of dropouts.

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This study examines how maternal education shapes the life and health of their children. Causal effects are identified from a Danish school reform that increased minimum compulsory schooling from 7 to 9 years in 1972 and estimates are based on large administrative registers. We find that the reform as well as maternal education when instrumented by it, has significant, positive effects on mothers' age at first birth and maternal health. Nevertheless, maternal education has no systematic causal effects on child health, neither at birth, during childhood, or in adolescence. This null finding is robust to a wide range of model specifications.

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The expansion of women's educational attainment may seem to be a promising path toward achieving economic equality between men and women, given the consistent rise in the economic value of higher education. Using yearly data from 1980 to 2017, we provide an updated and comprehensive examination of the gender gap in education premiums, showing that it is not as promising as it could and should be. Women receive lower rewards to their higher education across the entire wage distribution, and this gender gap increases at the very top education premiums-the top quarter and, even more so, the top decile. Moreover, insufficient theoretical and methodological attention to this top premium effect has left gender inequality concealed in the extensive empirical studies on the topic. Specifically, when we artificially censor the top at the 80th wage percentile, the gender gaps in education premium reverse. Lastly, the growth in earnings inequality in the United States, which is greatly affected by the expansion of top earnings, is associated with the growing gender gap in education premiums over time. We discuss the meaning and implications of this structural disadvantage at a time when women's educational advantage keeps growing and higher education remains the most important factor for economic attainment.

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This article studies to what extent societal processes such as educational expansion, economic modernisation and business cycles have affected the returns to educational certificates of women and men entering the labour market in West Germany. Using longitudinal data, long-term changes in cohort- and period-specific effects on socio-economic status attainment at entry into the labour market are investigated between 1945 and 2008. Analyses demonstrate that the entrants' average socio-economic prestige scores have clearly risen in the process of modernisation. Despite educational expansion, increasing skill demands for highly qualified graduates resulted in rising rates of returns for the most highly educated entrants across birth cohorts. While educational expansion and economic modernisation have boosted socio-economic returns at entry into the labour market for women from all educational levels, it has not been the case for men with the lowest levels of education. Both educational expansion and rising skill requirements of occupations led to an increasing polarisation of inequality between tertiary educated labour-market entrants and less-qualified school leavers. Educational expansion in West Germany has therefore never exceeded the occupational skill demands at entry into the labour market.

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While several studies have estimated returns to education in Australia, there is limited evidence regarding the influence of health on the returns. This paper identifies how health affects returns to education in the labour market using the Heckman selection bias-corrected model. We measured health status using a self-rated health item with five response categories 'poor, fair, good, very good, and excellent'. The findings show that poor health or being unhealthy (defined as 'poor' or 'fair') interacts with education, such that the benefits of education (i.e. higher hourly wage rate) are curtailed in those with health problems; the adverse effect is stronger for those in lower skilled jobs. The estimated returns to an additional year of schooling on average over 2001-2017 is 7.43% and 6.88% for the healthy and unhealthy groups, respectively. Thus, the return for workers with poor health is 7.4% lower than the return for healthier workers (for each additional year of schooling). This gap in the returns is equivalent to a productivity loss of about $19-25 billion per year. The lower returns to education for workers with poor health likely results from lower productivity while at work rather than loss of working days as the estimate is based on an hourly wage rate (rather than days or hours absent from work). These lower returns may also be explained by unhealthy workers accepting lower paid jobs given the same levels of experience, skills and education that healthier counterparts have. The cost of poor health to labour market returns is further amplified in low-skilled occupations, a process which is likely to exacerbate socio-economic inequalities and undercut social mobility.

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For decades, Western societies have experienced educational expansion accompanied by an upgrading of skills. The literature provides competing hypotheses on the consequences for educational wage returns - among them are the positional value theory, routine-biased technological change, and the social closure theory. We test these theoretical perspectives empirically on young, male full-time workers in West Germany between 1976 and 2010 in two ideal-type occupational segments using 2.34 million administrative earnings records (Sample of Integrated Labor Market Biographies, SIAB). Our findings show no credential inflation across all levels of education. Instead, the picture in both segments - negative effects of educational expansion on the returns to medium- but not high-level skills - confirms the predictions of routine-biased technological change. Wage premiums for medium-skilled workers differ between segments: the premiums worsen over time in the general segment whereas social-closure mechanisms seem to weaken this negative trend for vocational graduates in the specific segment.

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This paper analyzes whether education has a protective effect on mental health. To estimate causal effects, we employ an instrumental variable (IV) technique that exploits a reform extending compulsory schooling by one year implemented between 1949 and 1969 in West Germany. We complement analyses on the Mental Component Summary (MCS) score as a generic measure of overall mental health with an MCS-based indicator for risk of developing symptoms of mental health disorder and a continuous measure of subjective well-being. Results support existing evidence of a positive relationship between completed years of secondary schooling and mental health in standard OLS estimations. In contrast, the IV estimations reveal no such causal protective effect and negative effects cannot be ruled out.

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Innovations in cancer treatment have lowered mortality, but little is known about their economic benefits. We assess the effect of two decades of improvement in cancer treatment options on the labor market outcomes of breast and prostate cancer patients. In addition, we compare this effect across cancer patients with different levels of educational attainment. We estimate the effect of medical innovation on cancer patients' labor market outcomes employing tax return and cancer registry data from Canada and measuring medical innovation by using the number of approved drugs and a quality-adjusted patent index. We find that innovations in cancer treatment during the 1990s and 2000s reduced the negative employment effects of cancer by 63% to 70%, corresponding to a reduction in the economic costs of prostate and breast cancer diagnoses by 13,500 and 5800 dollars per year, respectively. The benefits of medical innovation are limited to cancer patients with postsecondary education.

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Economic evaluations carried out to inform the allocation of finite public funds ought to take into account all relevant costs and benefits. When such evaluations adopt a societal perspective, it is important that they include 'time-related' costs arising from productivity and leisure time losses due to receipt of care, ill health or both. For programmes that relate to children, similar costs arise from forgone time, though there is a distinct lack of insights into how such costs should be identified, measured and valued. We set out to explore how forgone time-including absence from formal education and childhood leisure time-can be estimated and incorporated into economic evaluations. To do so, we look at theories and approaches to time valuation proposed in different disciplines and we discuss their suitability for use in health economics research. We find that, while there is a sizeable literature on time valuation methods in education, labour and transportation economics, much of this is not directly applicable to economic evaluation of health care interventions for children. We identify gaps in existing methods and practice, we outline challenges in moving forwards and we provide a list of considerations aiming to assist researchers in deciding whether, and how, to include foregone time-related costs in economic evaluation.

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This study analyses the relationship between life expectancy and parental education. Based on data from the German Socio-Economic Panel Study and survival analysis models, we show that maternal education is related to children's life expectancy - even after controlling for children's own level of education. This applies equally to daughters and sons as well as to children's further life expectancies examined at age 35 to age 65. This pattern is more pronounced for younger cohorts. In most cases, the education of the father is not significantly related to children's life expectancy. Neither the vocational training nor the occupational position of the parents in childhood, which both correlate with household income, can explain the connection. The health behaviour of the children and the health accumulated over the life course appear as important channels. This study extends the previous literature that focused mostly on the relationship between individuals' own education and their life expectancy. It implies that the link between education and life expectancy is substantially stronger and that returns to education are higher if the intergenerational component is considered.

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This article presents a new way of analysing educational assortative mating patterns, using a detailed 'micro-educational' classification capturing both hierarchical and horizontal forms of educational differentiation. Taking advantage of rich Danish population data, we apply log-linear models that include four ways of measuring educational homogamy patterns: (a) by returns to education, (b) by macro-education (five aggregated levels), (c) by field of study (16 categories), and (d) by a disaggregated micro-educational classification, combining levels and fields of study (54 groups). Our results show declines in educational homogamy from 1984 to 2013, but the odds ratios of being educationally homogamous at the university college and university levels remain of substantial magnitude, by both the macro- and micro-educational measures. The micro-educational classification outperforms all other measures in explaining the associations in the homogamy tables. The income measure ('returns to education') does a particularly poor job of explaining homogamy patterns from 1984 to 2013.

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This paper analyzes the non-market benefits of education and ability. Using a dynamic model of educational choice we estimate returns to education that account for selection bias and sorting on gains. We investigate a range of non-market outcomes including incarceration, mental health, voter participation, trust, and participation in welfare. We find distinct patterns of returns that depend on the levels of schooling and ability. Unlike the monetary benefits of education, the benefits to education for many non-market outcomes are greater for low-ability persons. College graduation decreases welfare use, lowers depression, and raises self-esteem more for less-able individuals.

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Schooling differences between identical twins are often utilized as a natural experiment to estimate returns to education. Despite longstanding doubts about the truly random nature of within-twin-pair schooling discordance, such discordance has not yet been understood comprehensively, in terms of diverse between- and within-family peer, academic, familial, social, and health exposures. Here, a predictive analysis using national U.S. midlife twin data shows that within-pair schooling differences are endogenous to a variety of childhood exposures. Using discordance propensities, returns to education under a true natural experiment are simulated. Results for midlife occupation and income reveal differences in estimated returns to education that are statistically insignificant, suggesting that twin-based estimates of causal effects are robust. Moreover, identical and fraternal twins show similar levels of discordance endogeneity and similar responses to propensity weighting, suggesting that the identical twins may not provide demonstrably better leverage in the causal identification of educational returns.

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In this empirical paper we attempt to measure the separate influence on civic engagement of educational attainment and cultural transmission of civic attitudes. Unlike most of the previous empirical works on this issue, we are able to approximate the cultural transmission of civic attitudes. We observe that civic returns to education are overstated when the transmission of civic attitudes is ignored. Moreover, the transmission of civic attitudes significantly enhances civic involvement and reinforces civic returns to education. Our findings are in line with the proposals of civic virtue theorists or grass movements who suggest that citizenship education should be included in the compulsory school curricula since, if not, families or local communities will only transmit their particular view of the world.

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In 1980, Zimbabwe rapidly expanded access to secondary schools, providing a natural experiment to estimate the impact of increased maternal secondary education on child mortality. Exploiting age specific exposure to these reforms, we find that children born to mothers most likely to have benefited from the policies were about 21% less likely to die than children born to slightly older mothers. We also find that increased education leads to delayed age at marriage, sexual debut, and first birth and that increased education leads to better economic opportunities for women. We find little evidence supporting other channels through which increased education might affect child mortality. Expanding access to secondary schools may greatly accelerate declines in child mortality in the developing world today.

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Though extensive research has explored the prevalence of educational assortative mating, what causes its variation across countries and over time is not well understood. Using data from the Luxembourg Income Study Database, I investigate the hypothesis that assortative mating by income is influenced by income inequality between educational strata. I find that in countries with greater returns to education, the odds of any sort of union that crosses educational boundaries is substantially reduced. However, I do not find substantial evidence of an effect of changes in returns to education on marital sorting within countries. Educational and labor market parity between males and females appear to be negatively related to marital sorting.

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This paper addresses trends in education-specific unemployment risks at labor market entry in West Germany from the mid-1970s to the present. In line with previous research it shows that vocationally qualified school-leavers have relatively lower unemployment risks than school-leavers with general education. Over time, the gap in unemployment risks between the low-educated and medium- and highly educated labor market entrants substantially widened for both sexes. The literature identifies two different mechanisms for this trend: structural or cyclical crowding out. While in the former scenario low-educated become increasingly unemployed due to an oversupply of tertiary graduates and displacement from above, in the latter their relative unemployment risk varies with the business cycle. The results provide evidence for cyclical rather than structural crowding-out in West Germany. Since macroeconomic conditions became generally worse over time, this strongly explains the widening unemployment gap between the low-educated and all other education groups.

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In this study, we estimate the causal effect of college expansion on earnings using the example of South Korea in the 1990s where the college enrollment rate increased from just over thirty percent to over eighty percent over a fifteen years period. We compare the pre-expansion cohort and the post-expansion cohort in order to identify those who would attend college because of the expansion but would not attend otherwise (compliers). We, then, estimate compliers' earnings gain from the college expansion relative to the earnings changes of two control groups: those who either would or would not go to college regardless of college expansion (always-takers and never-takers). We find a striking gendered pattern; for men, the earnings return to college expansion is moderate and mostly driven by the increasing skill price, whereas, for women, the return is significantly large even net of the skill price change.

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The causal impact of higher education on earnings may be heterogeneous across different members of a population. Using a newly developed instrumental-variable method in economics, we illustrate heterogeneous treatment effects of higher education on earnings resulting from sorting mechanisms that select individuals with certain unobserved attributes into college education. The setting of our empirical work is contemporary Taiwan -- a transitional economy that has recently experienced a rapid expansion in higher education. We find distinct patterns by gender, with selection bias most clearly shown among women but not among men: the college return to earnings is on average greater for women who actually attended college than women who did not attend college.