The effect of education level on wages in Israel

Abstract

This article examines the relationship between education levels and incomes of wage earners in Israel in 2014. Previous studies found that there is a demand for workers with education in general and for higher education in particular, such that people with academic degrees enjoy higher wages. However, some of the studies published in recent years claim that the ability of people with academic degrees to integrate into the workforce has decreased. It is therefore expected that the benefit of having an academic degree, will decrease. This article shows that the marginal effect of the number of years of education on income in Israel in 2014, though decreasing, is not negligible and hardly negative.

Keywords:

• Education
• incomes
• academic degree
• Israel

Acknowledgement

The author wishes to thank Nir Shofel and Yona Yona for their assistance.

Notes

1. Guri-Rozenblit, Accessibility to Higher Education.

2. Coleman, “Social Capital in the Creation.”

3. Weiss, Klein, and Grauenhorst, “The Effects of Work.”

4. Teichler, “Research on the Relationships.”

5. Frish, The Causal Effect of Education.

6. Brand and Xi, “Who Benefits Most from College?”

7. Livanos and Nuñez, “Better Safe than Sorry?”

8. Weiss, Klein, and Grauenhorst, “The Effects of Work.”

9. Frish, The Causal Effect of Education.

10. Meltzer, Education Returns.

11. Navon, The Effect of Heterogeneous.