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Measuring the earnings returns to lifelong learning in the UK

Author

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  • Blanden, Jo
  • Buscha, Franz
  • Sturgis, Patrick
  • Urwin, Peter
Abstract
This paper examines the earnings returns to learning that takes place following the conventional ‘school-to-work’ stage of the life-course. We operationalise such ‘lifelong learning’ as the attainment of certified qualifications in adulthood, following the completion of the first period of continuous full-time education. Using data from the British Household Panel Survey (BHPS) for the period 1991–2006, our approach and findings represent an important addition to the existing evidence base. By using annual data, we are able to employ the fixed effects estimator, which eliminates the problem of time-invariant unobserved heterogeneity. Our dynamic specification uses a lag structure to consider how earnings returns evolve in the medium and longer run, whilst also controlling for wage trends which were evident prior to qualification attainment. Our results show a medium-run return for women of 10% on hourly wages. For men, initial suggestions of a similar positive return are eliminated once pre-qualification trends are taken into account. This suggests that adult learning has a causal effect on women's subsequent earnings but, for men, any apparent gain is due to selection.

Suggested Citation

  • Blanden, Jo & Buscha, Franz & Sturgis, Patrick & Urwin, Peter, 2012. "Measuring the earnings returns to lifelong learning in the UK," Economics of Education Review, Elsevier, vol. 31(4), pages 501-514.
    • Handle: RePEc:eee:ecoedu:v:31:y:2012:i:4:p:501-514
    DOI: 10.1016/j.econedurev.2011.12.009
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    Cited by:

    1. Bergemann, Annette & van den Berg, Gerard J., 2008. "From Giving Birth to Paid Labor: The Effects of Adult Education for Prime-Aged Mothers," IZA Discussion Papers 3600, Institute of Labor Economics (IZA).
    2. Daria Luchinskaya & Peter Dickinson, 2019. "‘Virtuous’ and ‘Vicious’ Circles? Adults’ Participation in Different Types of Training in the UK and Its Association with Wages," Social Inclusion, Cogitatio Press, vol. 7(3), pages 177-201.
    3. Sandra Nieto & Raúl Ramos, 2013. "Non-Formal Education, Overeducation And Wages," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 21(1), pages 5-28, Spring.
    4. Patrick Bennett & Richard Blundell & Kjell G. Salvanes, 2020. "A second chance? Labor market returns to adult education using school reforms," IFS Working Papers W20/28, Institute for Fiscal Studies.
    5. Oleg Badunenko & Deni Mazrekaj & Subal C. Kumbhakar & Kristof Witte, 2021. "Persistent and transient inefficiency in adult education," Empirical Economics, Springer, vol. 60(6), pages 2925-2942, June.
    6. Friedline, Terri & Elliott, William & Chowa, Gina A.N., 2013. "Testing an asset-building approach for young people: Early access to savings predicts later savings," Economics of Education Review, Elsevier, vol. 33(C), pages 31-51.
    7. Kauhanen, Antti, 2018. "The Effects of an Education-Leave Program on Educational Attainment and Labor-Market Outcomes," ETLA Working Papers 56, The Research Institute of the Finnish Economy.
    8. Daniela Vono de Vilhena & Yuliya Kosyakova & Elina Kilpi-Jakonen & Patricia McMullin, 2016. "Does adult education contribute to securing non-precarious employment? A cross-national comparison," Work, Employment & Society, British Sociological Association, vol. 30(1), pages 97-117, February.
    9. Fritz Schiltz & Kristof Witte & Deni Mazrekaj, 2020. "Managerial efficiency and efficiency differentials in adult education: a conditional and bias-corrected efficiency analysis," Annals of Operations Research, Springer, vol. 288(2), pages 529-546, May.
    10. Sengupta, Nandana & Chawla, Neaketa & Agarwal, Anna & Evans, James, 2023. "Do online certifications improve job market outcomes? Evidence from an IT skills certification platform in India," Information Economics and Policy, Elsevier, vol. 65(C).
    11. Yuhang Han & Yi Zhou & Sarah Carr & Jiaoyan Jiang, 2024. "Lifelong learning in the workplace: the knowledge management role of corporate universities in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    12. Li, Haizheng & Liu, Qinyi & Su, Yan & Ederer, Peer, 2023. "Policy initiatives, self-sorting, and labor market effects of tertiary education for adult workers," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 205-221.
    13. Kauhanen, Antti & Virtanen, Hanna, 2021. "Heterogeneity in Labor Market Returns to Adult Education," ETLA Working Papers 91, The Research Institute of the Finnish Economy.
    14. Stefan Denzler & Jens Ruhose & Stefan C. Wolter, 2022. ""The double-dividend of training" - Labour market effects of work-related continuous education in Switzerland," Economics of Education Working Paper Series 0196, University of Zurich, Department of Business Administration (IBW).
    15. Dabija Dan-Cristian & Abrudan Ioana-Nicoleta & Postelnicu Cătălin, 2016. "Teachers’ Motivations and Expectations Regarding Lifelong Learning," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 61(3), pages 32-42, December.
    16. Juan Gabriel Brida & Marta Meleddu & Manuela Pulina & Vania Statzu, 2014. "Investigating informal learning at a cultural site," Economics Bulletin, AccessEcon, vol. 34(2), pages 634-650.

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    More about this item

    Keywords

    Adult learning; Earnings; Qualifications;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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