Credential changes and education earnings premia in Australia

Abstract

Post-school education earnings premia have remained strikingly stable over the 1981 to 2003-2004 period in Australia. This stability contrasts sharply with the rising college premium observed in the USA. The observed stability in Australia may in part be due to changes in the credentials earned by individuals entering certain professional occupations (especially nursing and teaching) during the period, particularly for women. We construct an estimate of the potential effect of within-occupation credential changes on estimates of education earnings premia in Australia over time. © Journal compilation © 2009 Economic Society of Australia.