Does the Short Supply of College Education Bite?

Abstract

Czech returns to education are estimated using 2002 data on hourly wages of salaried employees. The return to an additional year of schooling is close to 10% – that is relatively high given the level of economic development and average schooling level. Particularly large is the college/high-school wage gap: it is about 50% higher than in Germany or Austria, which have a similar education structure. This is likely caused by the short supply of tertiary education provided by the funds-starved Czech public colleges.Czech Republic; Returns to Education