The paper investigates the wage determination of Hungarian highereducation
graduates with using two samples of Hungarian careerbeginners,
applying IV techniques and the multiple indicator solution
so as to diminish potential estimation biases due to endogeneity of independent
variables (especially the education variable) and the simultaneity
of wages and working time. The results show that university
education yields considerable wage premium as compared to college
education, and that the return to education would be significantly underestimated
by ols. The estimates confirm that foreign-language and
IT knowledge also produce advantages in terms of wages.
