THE RETURNS TO EDUCATION IN SPAIN

This article provides microeconomic estimates of the returns to education in Spain. The data used, which supplemented the second quarter of the 1990 Spanish labor force survey, allow to estimate wage equations by sex, class of worker and private/public sectors of employment. In general, the results obtained are consistent with those of the literature for other countries: an additional year of education yields about 8.4% increase in earnings. When distinguishing by class of worker, the rate of return to education is higher for self-employed than for wage and salary workers, particularly so for the rate of return to higher education. By sector of employment, the results indicate that secondary education is better compensated in the private sector, whereas a university degree receives a greater rate of return in the public sector. The returns to university education is higher among women than among men regardless of the class of worker and the sector of employment.