Earnings and Occupational Status Returns to Lifelong Learning

This paper investigates the returns from lifelong learning, as measured by qualification achievement after a period in the labour market. We depart from other studies by using the annual panel data of the British Household Panel Survey (BHPS) and considering two outcomes, hourly earnings and the CAMSIS score (a measure of occupational status). A fixed effects methodology is used to counter endogeneity bias and lagged effects are estimated to demonstrate how the returns from lifelong learning evolve in the year after the qualification is obtained and up to ten years later. We find evidence of general returns to lifelong learning to both earnings and CAMSIS for both men and women. Analysis by age group reveals that earnings returns are concentrated among younger groups, while estimation by qualification level indicates that higher level qualifications exhibit higher earnings returns, occupational returns are less strongly affected by the level of qualification obtained. Key words: Lifelong learning, Earnings, Social status