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Estimating the return to education considerate the legislation of education in Brazil as an instrumental variable

Author

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  • Wladimir Teixeira
  • Naércio Aquino Menezes-Filho

Abstract

This paper aims to estimate the impact of education on wages in Brazil. GDP, Population, and the number of schools in the state and year when the individual was born as instruments for his education level were used. In this context, the paper consider other instrument, the Brazilian education Law 5692 of 1971. The results show that the Law 5692 of 1971 and the number of schools in the individual´s year of birth bears a positive relationship with his education, and the returns to education decrease quite substantially when the method of instrumental variables is used. JEL Classification: J30; J31; I21.

Suggested Citation

  • Wladimir Teixeira & Naércio Aquino Menezes-Filho, 2012. "Estimating the return to education considerate the legislation of education in Brazil as an instrumental variable," Brazilian Journal of Political Economy, Center of Political Economy, vol. 32(3), pages 479-496.
    • Handle: RePEc:ekm:repojs:v:32:y:2012:i:3:p:479-496:id:365
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    More about this item

    Keywords

    Mincer; instrumental variables; education;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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