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In-School Work Experience and the Returns to Schooling

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Light, Audrey
Abstract

Students often accumulate substantial work experience before leaving school. Because conventional earnings functions do not control for in-school work experience, their estimates of the return to schooling include the benefit of work experience gained along the way. Using data from the National Longitudinal Survey of Youth, I estimate wage models with and without controls for in-school work experience. The estimated schooling coefficients are 25%-44% higher (depending on how I control for ability bias) when in-school work experience is omitted than when it is included. These findings indicate that conventional models significantly overstate the wage effects of "school only." Copyright 2001 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 19 (2001)
Issue (Month): 1 (January)
Pages: 65-93
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Handle: RePEc:ucp:jlabec:v:19:y:2001:i:1:p:65-93

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  1. Sullivan, Paul, 2006. "A Dynamic Analysis of Educational Attainment, Occupational Choices, and Job Search," MPRA Paper 3896, University Library of Munich, Germany, revised Jun 2007. [Downloadable!]
    Other versions:
  2. Kalenkoski, Charlene Marie & Sabrina Wulff Pabilonia, 2004. "Parental Transfers, Student Achievement, and the Labor Supply of College Students," Working Papers 374, U.S. Bureau of Labor Statistics. [Downloadable!]
  3. Barbara L. Wolfe & Robert H. Haveman, 2002. "Social and nonmarket benefits from education in an advanced economy," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, issue Jun, pages 97-142. [Downloadable!]
  4. Marigee Bacolod & V. Joseph Hotz, 2005. "Cohort Changes in the Transition from School to Work: What Changed and What Consequences Did it have for Wages?," Working Papers 050618, University of California-Irvine, Department of Economics. [Downloadable!]
  5. Pauline Domingo, 2007. "Travail en cours d'études, échec et insertion professionnelle : le cas des DEUG non diplômés," Documents de travail du Centre d'Economie de la Sorbonne r07007, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne. [Downloadable!]
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