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Education policy reform, local average treatment effect and returns to schooling from instrumental variables in the Philippines

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Chris Sakellariou

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Abstract

A nationally representative dataset from the Philippines is used to derive returns to schooling estimates from instrumental variables, utilizing a supply-side intervention in the education market capable of generating significant changes in schooling. These estimates apply to a subgroup of, mainly, liquidity constrained individuals, in the spirit of the Local Average Treatment Effect (LATE) literature. Returns to schooling estimates which apply to a subgroup of individuals affected by policy intervention may be more interesting from a policy perspective than the return to the 'average’ individual. The findings are consistent with other recent evidence suggesting that the causal effect of education, at least for certain subgroups of individuals, is as big or bigger than what is suggested by OLS estimates.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 4 (March)
Pages: 473-481
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:473-481

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. James J. Heckman & Edward J. Vytlacil, 2000. "Local Instrumental Variables," NBER Technical Working Papers 0252, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Kevin Denny & Colm Harmon, 2000. "Education policy reform and the return to schooling from instrumental variables," IFS Working Papers W00/06, Institute for Fiscal Studies. [Downloadable!]
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  3. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," United Kingdom Stata Users' Group Meetings 2003 02, Stata Users Group. [Downloadable!]
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  4. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2003. "Evaluating the impact of education on earnings in the UK: Models, methods and results from the NCDS," IFS Working Papers W03/20, Institute for Fiscal Studies. [Downloadable!]
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  5. Ichino, Andrea & Winter-Ebmer, Rudolf, 1998. "Lower and Upper Bounds of Returns to Schooling: An Exercise in IV estimation with Different Instruments," CEPR Discussion Papers 2007, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Chris Sakellariou, 2004. "The use of quantile regressions in estimating gender wage differentials: a case study of the Philippines," Applied Economics, Taylor and Francis Journals, vol. 36(9), pages 1001-1007, May. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Patrinos, Harry Anthony, 2008. "Quality of schooling, returns to schooling and the 1981 vouchers reform in Chile," Policy Research Working Paper Series 4617, The World Bank. [Downloadable!]
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