The Returns to the Quantity and Quality of Education: Evidence for Men in England and Wales



Until the late 1960s, state schooling in England and Wales was determined by an ability test of pupils at age 11 which had an effect on both the quantity and quality of education. By estimating the relationship between earnings and earlier schooling during a period when school areas changed from selective to non-selective education, we consider how the returns to the quantity of education are confounded by differences in the quality of schooling and whether the effects of quality are confounded by its correlation with quantity. Our results confirm recent evidence that returns to education quantity are large and quality effects are small.