The impact of the transition and European Union membership on the returns to schooling in Europe

This study explores how economic transition and European Union (EU) accession have affected returns to schooling in Eastern Europe and Central Asia, nearly 30 years after independence. It examines whether moving from centrally planned to market economies and joining the EU influenced the returns to schooling in these regions. Using panel data and difference-in-differences methods, returns to schooling are compared across 20 transition and 20 non-transition countries. Results show that returns to schooling increased most strongly in transition countries that subsequently joined the European Union, suggesting that EU-related reforms and greater trade openness reinforced the effects of economic transition.