Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20707
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion Papers No. 1409
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
The gradualist approach to economic transition in Belarus would contribute to form the a priori expectation that the rate of return to education is low and the earnings profile by work experience flat, like they supposedly were under central-planning. However, the first available estimates of Mincerian earnings equations based on the Belarusian Household Survey on Incomes and Expenditure suggest that the skill payoff was high in 1996, at about 10.1% per year, and stable. The return to one year of work experience is also high at 5%. This result maintains also after controlling for sample selection bias, despite a general reduction in the annual rate of return to education by about 20-30%. Though, it is ambiguous whether the high-skill payoff is the consequence of market forces coming into play or of policy decisions, considering the pervasive role of the state in the process of wage determination.
Subjects: 
educational economics
returns to human capital
economic transition
Belarus
JEL: 
P52
J31
Document Type: 
Working Paper

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