Wage Returns to Different Education Levels. Evidence from Poland

The aim of the paper is to analyse the changes in the wage premiums for workers with different types and levels of education in Poland in 1995-2013. Important changes regarding the educational structure of employees have taken place during this period. The share of employed with tertiary education has significantly increased and the share of employed with basic vocational education substantially decreased. The relative returns to different types and levels of education were estimated using a standard Mincerian wage equation framework. The results indicate that recent changes in the structure of employment have important implications for wage structure. In particular, the entry of many young workers with tertiary education into the labour market has resulted in a decline in the relative level of wages they receive. On the other hand, a noticeable decrease in the number of vocational education graduates and deficits in the labour supply in some occupations have translated into an increase in relative wages for this type of workers. The results are important for educational policy in Poland.