Is Enough Better than Too Much? Research on Returns to Education: Sector and Occupational Level Analysis of Wage with Education in Canada

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Title: Is Enough Better than Too Much? Research on Returns to Education: Sector and Occupational Level Analysis of Wage with Education in Canada
Authors: Chen, Dong
Date: 2016-08
Abstract: This paper uses census data to estimate the effects of education on wage. The data are divided according to industrial sector and the occupation, and the returns to education are estimated for each sector and occupation in order to estimate the effects of education, and to find the optimal education level. The results show that the returns to education depend greatly on sector and occupation. In most sectors and occupations, the marginal returns to the doctorate degree are low, suggesting that having a doctorate degree does not lead to higher wages. However, obtaining a bachelor’s degree or master’s degree does lead to higher wages for workers in most sectors and occupations. Thus, the returns to education appear to have been diminishing in some sectors and occupations. Over-education may be one explanation for the diminishing returns to education. This paper examines such cases at the levels of industrial sector and occupation and tries to assess the potential causes of diminishing returns to education.
URL: http://hdl.handle.net/10393/35147
CollectionScience économique - Mémoires // Economics - Research Papers
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