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European Sociological Review Advance Access originally published online on December 7, 2006
European Sociological Review 2007 23(1):65-80; doi:10.1093/esr/jcl020
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© The Author 2006. Published by Oxford University Press. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org

How Much Does Education Matter and Why?

The Effects of Education on Socio-economic Outcomes among School-leavers in the Netherlands

Rolf K. W. van der Velden and Maarten H. J. Wolbers

Maarten H.J. Wolbers, Department of Social Research Methodology, Faculty of Social Sciences, Free University Amsterdam, De Boelelaan 1081, 1081 HV Amsterdam, The Netherlands. Email: mhj.wolbers{at}fsw.vu.nl

Correspondence: Rolf K.W. van der Velden (to whom correspondence should be addressed), Research Centre for Education and the Labour Market (ROA), Maastricht University, P.O. Box 616, 6200 MD Maastricht, The Netherlands. Email: r.vandervelden{at}roa.unimaas.nl

This article explores the total (measured and unmeasured) impact of education on some of the main socio-economic outcomes (that is, employment opportunities, job security and wages) among school-leavers who finished upper secondary or tertiary education in the Netherlands. The empirical analysis shows that the effects of education are typically underestimated in labour market research. Education has a large impact on all outcomes under investigation. Apart from level of education, the selectivity of the study programme turns out to affect socio-economic outcomes, although the effects of the latter educational characteristic are only significant in the private sector. Differences between schools do not have an impact on wages and job security, but they do to some extent affect employment opportunities.

Manuscript received: June 1, 2005.


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