Education policy reform and the return to schooling from instrumental variables

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Title: Education policy reform and the return to schooling from instrumental variables
Authors: Denny, Kevin
Harmon, Colm
Permanent link: http://hdl.handle.net/10197/653
Date: 7-Apr-2000
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%.
Funding Details: Part funded by the EU Commission under the auspices of the TSER programme (contract SOE2-CT98-2044) and by the award of a Marie Curie fellowship to Colm Harmon.
Type of material: Working Paper
Publisher: Institute for Fiscal Studies
Copyright (published version): 2000 Institute for Fiscal Studies
Subject LCSH: Education and state--Ireland
Educational attainment--Ireland
Education--Economic aspects
DOI: 10.1920/wp.ifs.2000.0007
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Research Collection
Economics Research Collection

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