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
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Date: 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: 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/Report no.: 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
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Research Collection
Economics Working Papers & Policy Papers

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