Earnings, Schooling, and Economic Reform

TL;DRAbstract

Earnings, Schooling, and Economic Reform: Econometric Evidence From Hungary (1986 2004) Nauro Campos and Dean Jolliffe How does the relationship between earnings and schooling change with the introduction of comprehensive economic reform? This article sheds light on this question using a unique data set and procedure to reduce sample-selection bias. The principal assumptions are that sample-selection bias was minimal in 1986 and that the decision to participate in the wage market after 1986 is correlated with age, gender, and schooling demographics. Once corrected for sample selection on observables, the increase in returns is smaller, suggesting the existence of the positive correlation between education and the decision to participate in the wage sector that was discussed above. 16 Comparing the panels shows that sample-selection bias is positive and quite large throughout the period of analysis. An advantage of the Wage and Earnings Survey design is that the sample was selected in a

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