Returns to qualifications and occupation for males and females: evidence from the British Workplace Employee Relations Survey (WERS) 1998

Abstract

This study explores the returns to qualifications by occupation for males and females by utilizing a matched employer–employee dataset. It shows that educational qualifications are of a major and significant importance in explaining earnings variation but the effect progressively disappears as one examines their impact at lower ranks of occupational status. Thus, it appears that precisely where workers are located in terms of occupation will determine the pay that they are likely to receive.

Notes

¹ Recent empirical studies on the returns to education include Harmon and Walker (1995) for the UK; Magoula and Psacharopoulos (1999) for Greece; Kalwij (2000) for the Netherlands; Sanmartin (2001) for Spain; Hartog et al . (2001) and Pereira and Martins (2004) for Portugal; and Chung (2003) for Malaysia.

² Thurow (1998).

³ On gender wage gap see also Kidd and Goninon (2000).

⁴ Battu et al. (1999), Sloane et al. (1999), Buchel and Battu (2000), Groot and van den Brink (2000), Hartog (2000) and Chevalier (2003).

⁵ It is beyond the scope of this study to examine the determinants of the level of qualification achieved by individuals.

⁶ The novel features of WERS (1998) are detailed in the special edition of the British Journal of Industrial Relations (1998).

⁷ The interpretation of logistic regression coefficients is discussed in Anderson and Phillips (1981), Ashby et al . (1986) and Koch and Edwards (1988).

⁸ Huber (1967) and Rogers (1993). A discussion for this issue is given in STATA, Users Guide, pp. 256–8.

⁹ Interestingly, Armstrong and McVicar (2000) find that there is strong relationship between initial general education and subsequent success in vocational training.