What Drives Returns to Higher Education: Evidence from Panel Data on Russian Regions (online via Zoom)

Ein Vortrag von Aleksey Oshchepkov (Center for Labour Market Studies, Higher School of Economics, Moscow) im Rahmen der Seminarreihe des AB Ökonomie am IOS.
Datum: 14. Juli 2020
Zeit: 13.30–15.00 Uhr
Ort: Leibniz-Institut für Ost-und Südosteuropaforschung (IOS), online via Zoom, link wird mit den Einladungen verschickt!
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In this study, we examine cross-regional variation in the rates of private return to higher education (RoRHE) in Russia. We obtain estimates of RoRHE for 79 regions-subjects of the Russian Federation by estimating region-specific mincerian wage equations using micro-data from the Occupational Wages Survey conducted by Rosstat in 2005, 2007, 2009, 2011, 2013, and 2015. We find substantial differences in RoRHEs across Russian regions: for instance, in 2015 RoRHEs ranged from about 40% to 125% (to the average wage of workers with secondary education) against about 65% at the country level. Next, we regress estimated RoRHEs on regional economic and labor market indicators, controlling for regional and time fixed effects. We find positive correlation of RoRHEs with both regional per capita GDPs and relative stocks of workers with higher education. RoRHEs also tend to be higher in regions with less favorable living conditions. Our findings call into question the standard country-level approach to estimate returns to education and may have useful implications for cross-national comparative research.