What a Quantile Approach Can Tell Us about Returns to Education in Europe

This paper seeks to analyse the relationship between wages and education at a European level, using a quantile regression in order to be able to extend the study along the whole wage distribution. This analysis is carried out for a sample of 14 European countries (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom), using the European Community Household Panel data-set. The paper aims to investigate whether the relationship between wages and education at European level is homogeneous and stable through time by running regressions for average and current (log)wages. Policy implications are derived. (Contains 7 tables, 2 figures, and 3 notes.)