The marginal and average returns to schooling

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Title: The marginal and average returns to schooling
Authors: Harmon, Colm
Walker, Ian
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Date: Sep-1996
Abstract: The existing literature now features many examples where log wages are linear in years of schooling and which effectively attempt to correct for least squares bias using instruments based essentially on a single variable. Two recent developments, taken together, cast some doubt on the downward bias in least squares estimates of the return to schooling that have been an important feature of the recent literature. The first is the realization that instrumental variable (IV) only estimate the effects of some treatment if the effect is the same for everyone. The second is that IV may only estimate the effect of the treatment on the individuals whose choices are affected by the instrument in question [extract]
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP96/20
Keywords: SchoolingWage determinationEndogeneity bias
Subject LCSH: Wages--Effect of education on
Education--Economic aspects
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Research Collection
Economics Working Papers & Policy Papers

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