The correlation between education and earnings: The External-Test-not-Content hypothesis (ETNC)

Autor/in	Wiles, Peter
Titel	The correlation between education and earnings: The External-Test-not-Content hypothesis (ETNC)
Quelle	In: Higher education, (1974) 1, S.43-58Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0018-1560
DOI	10.1007/BF00153991
Schlagwörter	High Education; Human Capital; Social Status; High Income; Trade Union
Abstract	Abstract The Human Capital theory, as ordinarily defined, is a “content” theory of the economic value of a higher education to its recipient or his employer. But non-vocational higher education offers by definition no such content. So why does it yield a higher income? Various theories are examined:The degree is an external test, vastly expensive to society but very cheap to individual employers;The degree course forms character, and that is a kind of human capital;The degree course exercises the mind, and develops it like a muscle;The degree confers social status;Insistence on a degree, including now vocational degrees, is a restrictive practice by many trade unions. People also seek non-vocational higher education because it is publicly financed. There is a “Robbinsian” supply curve of higher education facilities. This is profoundly irrational, but all parties react rationally to it. No evidence connecting degree certificates with income could distinguish between Human Capital and most of these other theories. Possible statistical tests are discussed.
Erfasst von	OLC
Update	2023/2/05