Are Return to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationship
AbstractIn this paper, I explore the ability-earnings relationships semiparametrically. I find evidence of nonlinearities in these relationships which vary across levels of schooling, and argue that ability-sorting into higher education creates problems for accurately identifing the return to schooling over the full ability support. Over an ability support which is "common" to those with and without a college education, we find that the college log wage premium is increasing for the more able, and this premium grew during the period 1984-1994 for individuals at all points in the ability distribution.
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Bibliographic InfoPaper provided by California Irvine - School of Social Sciences in its series Papers with number 00-01-12.
Length: 24 pages
Date of creation: 2000
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Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.
EDUCATION ; WAGES ; DISTRIBUTION;
Other versions of this item:
- Tobias, Justin, 2001. "Are Returns to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationships," Staff General Research Papers 12016, Iowa State University, Department of Economics.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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