C. Harmon et I. Walker, The returns to the quantity and quality of education: Evidence for men in England and Wales, ECONOMICA, 67(265), 2000, pp. 19-35
Until the late 1960s, state schooling in England and Wales was determined b
y an ability test of pupils at age 11 which had an effect on both the quant
ity and quality of education. By estimating the relationship between earnin
gs and earlier schooling during a period when school areas changed from sel
ective to non-selective education, we consider how the returns to the quant
ity of education are confounded by differences in the quality of schooling
and whether the effects of quality are confounded by its correlation with q
uantity. Our results confirm recent evidence that returns to education quan
tity are large and quality effects are small.