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Regular version of the site

Article

Estimating the Effect of Higher Education on an Employee’s Wage

Studies on Russian Economic Development. 2019. Vol. 30. No. 3. P. 319-326.
Translator: K. Lazarev.

This paper proposes a new method for estimating the effect of education on an employee’s wage:
with the help of the generalized Heckman model with switching. Application of this method makes it possible
to avoid the selection bias due to the endogenous accounting for nonrandom consideration of individuals
both as employed and having higher education. This model makes it possible to estimate whether it is worth-
while for an individual to get a higher education in terms of changes in their expected income. Analysis of the
distribution of the effect of the education level on wages among employees makes it possible to evaluate the
efficiency of the higher education system in providing the population with skills and competencies that are
significant in the labor market.