Does adult education at upper secondary level influence annual wage earnings?



Table 9 Logit estimates of the probability of accomplished university studies.

Dependent variable: 1 if at least four years of studies as measured in SUN2003,
otherwise zero.

Males                   Females

AE number of credits

- .067

(.0859)

-.175*

(.0937)

AE; zero credits

.002

- .076

(.1051)

(.0890)

AE 1-250 credits

- .009

- .127**

(.0740)

(.0645)

AE 251-500 credits

.040

- .245**

(.1199)

(.1244)

AE > 500 credits

- .129

.100

(.1475)

(.1565)

Reference group: No registration at komvux.

N

10033    10033

12411     12411

Pseudo-R2

.060.060

.053.078

Note I:      ***Significant at the 1 % level.      **at the 5 % level   *at the 10 % level.

Note II: Explanatory variables included; dummies for foreign born, father’s and mother’s education
and first year of registration in higher education 1992 - 1997.

If three years of studies is used as the threshold value of the dependent vari-
able, there are no negative probabilities found for males or females (results not
displayed). The logit regressions were also run with AE participants condi-
tioned to have a reported two-year upper secondary education in SUN1990 (a
large fraction of these were excluded in the preceding section). The coefficients
then remain insignificant in all versions of the estimations.

Now, given the number of years of higher education, the returns on annual
earnings may differ for individuals with AE prior to enrolment. Table 10 pre-
sents parameter estimates indicating the payoff to a year of higher education.
The logarithmic value of the annual wage earnings in 2002 is used as outcome
variable and the sample is conditioned to not have been registered in higher
education later than 2000. The parameters pertaining to the interaction variable,
studying years times AE participation, indicate whether there is a difference in
the payoff to higher studies between individuals with and without AE. To give
an account of its influence, estimation results are first displayed from regres-

IFAU - Does adult education at upper secondary level influence annual wage earnings?

35




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