Does temporary interruption in postsecondary education induce a wage penalty? Evidence from Canada
Authors: Bernard Fortin and Safa Ragued
Overview
Abstract (English)
Almost 40% of Canadian youth who left postsecondary education in 1999 had returned two years later. This paper investigates the extent to which schooling discontinuities affect post-graduation starting wages and whether the latter are influenced by the reasons behind these discontinuities. We use data from the 2007 National Graduate Survey. We apply Lewbel’s (2012) generated instruments approach. The source of identification is a heteroscedastic covariance restriction of the error terms that is a feature of many models of endogeneity. We also perform two-stage quantile regressions. We find a positive effect on wages of temporary interruption for men who held a full-time job during their out-of-school spell(s). Both men and women witness a wage decrease if their interruption depends on health issues. Women bear a wage penalty if their interruption is due to a part-time job, to lack of money, or is caused by reasons other than health, work, and money.
Abstract (French)
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Details
Type | Journal article |
---|---|
Author | Bernard Fortin and Safa Ragued |
Publication Year | 2017 |
Title | Does temporary interruption in postsecondary education induce a wage penalty? Evidence from Canada |
Volume | 58 |
Journal Name | Economics of Education Review |
Number | June |
Pages | 108-122 |
Publication Language | English |
- Bernard Fortin
- Bernard Fortin and Safa Ragued
- Does temporary interruption in postsecondary education induce a wage penalty? Evidence from Canada
- Economics of Education Review
- 58
- 2017
- June
- 108-122