Open AccessIs the Marginal Effect of Education on Income Diminishing?
Author(s) -
Tal Shahor
Publication year - 2018
Publication title -
european journal of economics and business studies
Language(s) - English
Resource type - Journals
eISSN - 2411-9571
pISSN - 2411-4073
DOI - 10.2478/ejes-2018-0037
Subject(s) - economics , wage , demographic economics , marginal utility , labour economics , marginal product , production (economics) , microeconomics
This study seeks to determine the effect of education on income for wage workers in Israel, for the years 2005 - 2015. The hypothesis of this study is that the marginal effect of the number of years of education on income will be declining, such that at a certain point, it will be zero or even negative. The results of the study show that until 2012, the marginal effect of the number of years of education on income is linear. However, beginning in 2013, the marginal effect of the number of years of education on income is declining.