In 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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Paper provided by California Irvine - School of Social Sciences in its series Papers with number
00-01-12.
Find related papers by JEL classification: C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods I21 - Health, Education, and Welfare - - Education - - - Analysis of Education J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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Eric Bettinger, 2004.
"How Financial Aid Affects Persistence,"
NBER Chapters,
in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 207-238
National Bureau of Economic Research, Inc.
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