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Alternative Estimates of the Effect of Schooling on Earnings

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  • Donna K. Ginther
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    Abstract

    This paper examines how assumptions imposed on the data influence estimates of schooling's effect on earnings. The paper models schooling decisions as treatment effects and imposes assumptions about schooling selection to estimate bounds on the treatment effect. The study begins by using the worst-case bounds derived by Manski (1989, 1990, 1994, 1995) and adds assumptions from the Roy model of schooling self-selection to narrow the bounds on the schooling treatment effect. The bounds are narrowed further by using family structure, college proximity, and school-quality characteristics as exclusion restrictions. The selection problem requires the researcher to make explicit assumptions to estimate the effect of schooling on earnings. This paper demonstrates that different selection assumptions yield very different results. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/003465300558542
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    Bibliographic Info

    Article provided by MIT Press in its journal The Review of Economics and Statistics.

    Volume (Year): 82 (2000)
    Issue (Month): 1 (February)
    Pages: 103-116

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    Handle: RePEc:tpr:restat:v:82:y:2000:i:1:p:103-116

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    Web page: http://mitpress.mit.edu/journals/

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Reamonn Lydon & Ian Walker, 2005. "Welfare to work, wages and wage growth," Fiscal Studies, Institute for Fiscal Studies, vol. 26(3), pages 335-370, September.
    2. Arnaud Chevalier & Gauthier Lanot, 2002. "Monotonicity and the Roy Model," CEE Discussion Papers 0028, Centre for the Economics of Education, LSE.
    3. Edna Maria Villarreal Peralta, 2010. "Evolución histórica de los rendimientos educativos en México: 1987-2009," Investigaciones de Economía de la Educación volume 5, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Greg (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 11, pages 223-244 Asociación de Economía de la Educación.
    4. Gundersen, Craig & Kreider, Brent, 2006. "Food Stamps and Food Insecurity: What Can Be Learned in the Presence of Non-Classical Measurement Error?," Staff General Research Papers 12690, Iowa State University, Department of Economics.
    5. Michael Gerfin & Martin Schellhorn, 2006. "Nonparametric bounds on the effect of deductibles in health care insurance on doctor visits - Swiss evidence," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 1011-1020.
    6. Ohkusa, Yasushi, 2004. "Programme evaluation of unemployment benefits in Japan: An average treatment effect approach," Japan and the World Economy, Elsevier, vol. 16(1), pages 95-111, January.
    7. Gundersen, Craig & Kreider, Brent & Pepper, John V., 2011. "The Impact of the National School Lunch Program on Child Health: A Nonparametric Bounds Analysis," Staff General Research Papers 32720, Iowa State University, Department of Economics.
    8. Yasushi Ohkusa, 2003. "Programme Evaluation of Unemployment Benefits in Japan: An Average Treatment Effect Approach," ISER Discussion Paper 0570, Institute of Social and Economic Research, Osaka University.
    9. Fernando Barceinas, 2003. "Endogeneidad y rendimientos de la educación," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 18(1), pages 79-131.

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