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Can education compensate for low ability? Evidence from British data (version 3.2)
Author(s)
Date Issued
July 2004
Date Available
09T16:44:27Z March 2009
Abstract
This paper uses cross section data to investigate whether the returns to education vary with the level of ability. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to
examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for
unobserved ability.
This paper forms part of the Policy Evaluation Program at the Institute for the Study of Social Change (ISSC) at UCD.
Type of Material
Working Paper
Publisher
Institute for Fiscal Studies
Series
Institute For Fiscal Studies Working Papers
WP04/19
Copyright (Published Version)
Institute for Fiscal Studies 2004
Classification
J31
Subject – LCSH
Education
Ability
Wages--Effect of education on
Web versions
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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