@techreport{Ammermuller2006Aggregate,
abstract = {On the basis of a theoretical model, we argue that higher aggregate
unemployment affects individual returns to education. We therefore include
aggregate unemployment and an interaction term between unemployment and
the individual education level in a standard Mincer equation. Our results show
that an increase in regional unemployment by 1% decreases the returns to
education by 0.005 percentage points. This implies that higher skilled
employees are better sheltered from labour market changes with respect to
their jobs but encounter larger wage changes than less skilled employees.
Differences in regional unemployment can in addition almost fully explain the
observed large differences in regional returns to education. We use
representative individual data and regional panel variation in unemployment
between different German regions and for different employee groups. We
demonstrate that our results are robust with respect to aggregation bias, time
lags and potential endogeneity of the unemployment variable.},
address = {Mannheim},
author = {Andreas Ammerm\"{u}ller and Anja Kuckulenz and Thomas Zwick},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {J24; C23; 330; returns to education; unemployment; regional variation; Bildungsertrag; Regionale Arbeitslosigkeit; Arbeitslosigkeit; Regionale Lohnstruktur; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {06-34},
publisher = {Zentrum f\"{u}r Europ\"{a}ische Wirtschaftsforschung (ZEW)},
title = {Aggregate Unemployment Decreases Individual Returns to Education},
type = {ZEW Discussion Papers},
url = {http://hdl.handle.net/10419/24226},
year = {2006}
}
