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Education policy reform and the return to schooling from instrumental variables
Author(s)
Date Issued
2000-04
Date Available
2009-03-03T14:56:45Z
Abstract
This paper exploits an unusual policy reform that had the effect of reducing the
direct cost of schooling in Ireland in the late 1960’s. This gave rise to an increased
level of schooling but with effects that vary substantially across family background.
This interaction of educational reform and family background generates a set of
instrumental variables that are used to estimate the return to schooling allowing for the endogeneity of schooling. Using a standard Mincer type model we find a large
and well-determined rate of return of around 12% which are substantially higher
than the OLS estimates of around 7%.
direct cost of schooling in Ireland in the late 1960’s. This gave rise to an increased
level of schooling but with effects that vary substantially across family background.
This interaction of educational reform and family background generates a set of
instrumental variables that are used to estimate the return to schooling allowing for the endogeneity of schooling. Using a standard Mincer type model we find a large
and well-determined rate of return of around 12% which are substantially higher
than the OLS estimates of around 7%.
Sponsorship
EU Commission under the auspices of the
TSER programme (contract SOE2-CT98-2044)
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP00/12
Copyright (Published Version)
UCD School of Economics 2000
Subject – LCSH
Education and state--Ireland
Educational attainment--Ireland
Education--Economic aspects
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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dennyk_workpap_038.pdf
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Format
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