Can education compensate for low ability? Evidence from British data (version 3.2)

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Title: Can education compensate for low ability? Evidence from British data (version 3.2)
Authors: Denny, Kevin
O'Sullivan, Vincent
Permanent link: http://hdl.handle.net/10197/943
Date: Jul-2004
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/Report no.: Institute For Fiscal Studies Working Papers; WP04/19
Copyright (published version): Institute for Fiscal Studies 2004
Keywords: EarningsEducationAbility
Subject LCSH: Education
Ability
Wages--Effect of education on
Other versions: http://www.ifs.org.uk/wps/wp0419.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Research Collection

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