Unobserved Heterogeneity and Risk in Wage Variance: Does Schooling provide Earnings Insurance?
AbstractWe apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education. We replicate the original study on US men and extend to US women, UK men and German men. Most original results are not robust. A college education cannot universally be considered an insurance against unpredictability of wages. One conclusion is unequivocally confirmed: uncertainty strongly dominates unobserved heterogeneity.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-045/3.
Date of creation: 22 Feb 2011
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Web page: http://www.tinbergen.nl
wage inequality; wage uncertainty; unobserved heterogeneity; selectivity; education; replication;
Other versions of this item:
- Mazza, Jacopo & van Ophem, Hans & Hartog, Joop, 2011. "Unobserved Heterogeneity and Risk in Wage Variance: Does Schooling Provide Earnings Insurance?," IZA Discussion Papers 5531, Institute for the Study of Labor (IZA).
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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- Kässi, Otto, 2012.
"Uncertainty and Heterogeneity in Returns to Education: Evidence from Finland,"
48738, University Library of Munich, Germany, revised 01 Aug 2013.
- Kässi, Otto, 2012. "Uncertainty and Heterogeneity in Returns to Education: Evidence from Finland," MPRA Paper 43503, University Library of Munich, Germany.
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