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Reporting errors, ability heterogeneity, and returns to schooling in China

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Author Info
Haizheng Li
Yi Luo
Abstract

This study is aimed at providing a more accurate estimate of the returns to schooling in China by controlling for unobserved ability heterogeneity and measurement errors. We identify a unique instrument to correct for the omitted ability bias. We find that the attenuation bias caused by measurement error dominates the omitted ability bias in the OLS estimation. Based on the GMM estimation, for young workers in China, the return to schooling is 15.0% overall and 16.9% for women. Copyright 2004 Blackwell Publishing Ltd

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Article provided by Blackwell Publishing in its journal Pacific Economic Review.

Volume (Year): 9 (2004)
Issue (Month): 3 (October)
Pages: 191-207
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Handle: RePEc:bla:pacecr:v:9:y:2004:i:3:p:191-207

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  1. Chen, Yuanyuan & Feng, Shuaizhang, 2009. "Parental Education and Wages: Evidence from China," IZA Discussion Papers 4218, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-12-21.

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