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Education, Work and Wages in the UK

机译：英国的教育，工作和工资

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This paper is concerned with the relationship between education, wages and working behaviour. The work is partly motivated by the sharp distinction in the literature between the returns to education and the effect of wages on labour supply. Education is the investment that cumulates in the form of human capital while labour supply is the utilization rate of that stock. Yet, variation in education is usually the basis for identifying labour supply models - education is assumed to determine wages but not affect labour supply. Moreover, it is commonly assumed that the private rate of return to education can be found from the schooling coefficient in a log-wage equation. Yet, the costs of education are largely independent of its subsequent utilization but the benefits will be higher the greater the utilization rate. Thus the returns will depend on how intensively that capital is utilized and we would expect that those who intend to work least to also invest least in human capital. Indeed, the net (of tax liabilities and welfare entitlements) return to education will be a complex function of labour supply and budget constraint considerations. Here we attempt to model the relationship between wages, work, education and the tax/welfare system allowing for the endogeneity of education as well for the correlations between the unobservable components of wages and working behaviour. We use the estimates to simulate the effect of a new UK policy designed to increase education for children from low-income households.
机译：本文涉及教育，工资与工作行为之间的关系。这项工作部分是由于文献中教育收益与工资对劳动力供给的影响之间的明显区别而引起的。教育是指以人力资本形式积累的投资，而劳动力供给是该库存的利用率。然而，教育的差异通常是确定劳动力供给模式的基础-假定教育是确定工资的，但不影响劳动力供给。此外，通常假定可以从对数工资方程式中的教育系数中找到私人的教育收益率。然而，教育的成本在很大程度上与其随后的利用无关，但是随着利用率的提高，收益将更高。因此，回报将取决于资金使用的强度，我们希望那些最不努力工作的人也最少投资于人力资本。确实，（税收负担和福利权利的）净回报是劳动力供给和预算约束因素的复杂功能。在这里，我们尝试对工资，工作，教育和税收/福利制度之间的关系进行建模，以考虑教育的内生性以及工资和工作行为的不可观察部分之间的相关性。我们使用这些估算值来模拟旨在提高低收入家庭儿童受教育程度的英国新政策的效果。

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