The Article, “Are There Institutional Differences In The

1741 WordsMay 5, 20177 Pages
The article, “Are there institutional differences in the earnings of Australian higher education graduates?”, was published in September 2016 by Paul Koshy, Richard Seymour and Mike Dockery. It talks about the possible relationships between the qualities of Australian universities and the earning outcomes of Australian graduates. The data used in this article is extracted from the “Household, Income and Labour Dynamics in Australia (HILDA).” The authors of this article discuss how institutional differences along with other variables affect the earnings of Australian graduates with respect to their universities. The human capital model tells us how higher education correlates to better developed skills and increased productivity, which in…show more content…
Her studies also show that females, and those with dependent children, experience lower wage premium. Using the “Australian Bureau of Statistics (ABS) Census” data, Wei (2010), the author of “measuring economic returns to post-school education in Australia”, finds out that the return on education and return on females were the highest in 2001 and have fallen in 2006. Research studying human capital also discovered that an individual who manage to land a job where he/she was under-educated tended to receive higher wages than those working in a job that matched thier education level. This happens because both the supply and demand of labor market are put into considerations. Preston (1997) also finds that there are wage discrepancies across different fields of disciplines, which is also associated with demand side of the labor market. In addition, the article analyzes the effects of institutions, since students from similar backgrounds tend to choose the same universities. Australia has an education system that has been classified academically and categorized by regions. For this data, 38 major Australian universities were considered and divided into 4 institutional groupings and 12 unaligned universities. The four groupings consists of; “Group of Eight”: 8 highly globally ranked institutions focusing on research, “Australian Technology Network (ATN)”: technology focused institutes,
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