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Education policy reform and the return to schooling from instrumental variables

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Author Info

  • Kevin Denny

    (Institute for Fiscal Studies and University College Dublin)

  • Colm Harmon

Abstract

This paper analyses levels of low literacy across twelve countries using the International Adult Literacy Survey. We go beyond existing work that only looks at the proportions below certain critical levels of literacy. Using methods developed for the measurement of poverty we calculate measures of literacy that are sensitive to the distribution of literacy within those defined as illiterate. This reveals a different pattern of the extent of literacy problems across countries and within some populations. These measures should be useful to policy makers who need to allocate resources to alleviate low literacy and numeracy.

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File URL: http://www.ifs.org.uk/wps/wp0006.pdf
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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W00/06.

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Length: 21 pp
Date of creation: Apr 2000
Date of revision:
Handle: RePEc:ifs:ifsewp:00/06

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References

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  1. Costas Meghir & Marten Palme, 2000. "Assessing the Effect of Schooling on Earnings Using a Social Experiment," Econometric Society World Congress 2000 Contributed Papers 0670, Econometric Society.
  2. Kevin Denny & Colm Harmon & Dorren McMahon & Sandra Redmond, 1999. "Literacy and Education in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 30(3), pages 215-226.
  3. Angrist, Joshua D & Krueger, Alan B, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 979-1014, November.
  4. Orley Ashenfelter & Colm Harmon & Hessel Oosterbeek, 2000. "A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias," NBER Working Papers 7457, National Bureau of Economic Research, Inc.
  5. Callan, T. & Harmon, C.P., 1997. "The Economic Return to Schooling in Ireland," Papers 97/23, College Dublin, Department of Political Economy-.
  6. repec:fth:prinin:415 is not listed on IDEAS
  7. Harmon, C & Ian Walker, 1995. "Estimates of the economic return to schooling for the UK," IFS Working Papers W95/12, Institute for Fiscal Studies.
  8. Jeffrey R. Kling, 2000. "Interpreting Instrumental Variables Estimates of the Returns to Schooling," NBER Working Papers 7989, National Bureau of Economic Research, Inc.
  9. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, July.
  10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  11. Colm Harmon; & Ian Walker, 1995. "Estimates of Economic Return to Schooling in the UK," Economics, Finance and Accounting Department Working Paper Series n540195, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  12. Kevin Denny & Colm Harmon & Sandra Redmond, 2000. "Functional literacy, educational attainment and earnings - evidence from the international adult literacy survey," IFS Working Papers W00/09, Institute for Fiscal Studies.
  13. Uusitalo, R. & Conneely, K., 1998. "Estimating Heterogeneous Treatment Effects in the Becker Schooling Model," University of Helsinki, Department of Economics 435, Department of Economics.
  14. Lang, Kevin, 1993. "Ability Bias, Discount Rate Bias and the Return to Education," MPRA Paper 24651, University Library of Munich, Germany.
  15. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," Working Papers 696, Princeton University, Department of Economics, Industrial Relations Section..
  16. repec:fth:prinin:425 is not listed on IDEAS
  17. Callan, Tim & Wren, Anne, 1994. "Male-Female Wage Differentials: Analysis and Policy Issues," Research Series, Economic and Social Research Institute (ESRI), number GRS163.
  18. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-46, March.
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Citations

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Cited by:
  1. Harmon, Colm & Walker, Ian & Westergaard-Nielsen, Niels, 2001. "Introduction [to Education and earnings in Europe : a cross country analysis of the returns to education]," Open Access publications from University College Dublin urn:hdl:10197/757, University College Dublin.
  2. Andrea Mercatanti, 2008. "A likelihood-based analysis for relaxing the exclusion restriction in randomized experiments with imperfect compliance," Temi di discussione (Economic working papers) 683, Bank of Italy, Economic Research and International Relations Area.
  3. Concetta, MENDOLICCHIO, 2006. "A Disaggregate Analysis of Private Returns to Education in Italy," Discussion Papers (ECON - Département des Sciences Economiques) 2006054, Université catholique de Louvain, Département des Sciences Economiques.
  4. Harmon, Colm, 2002. "Schooling returns, schooling decisions and educational finance," Open Access publications from University College Dublin urn:hdl:10197/669, University College Dublin.
  5. Angel de la Fuente, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 576.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  6. Brunello, Giorgio & Fort, Margherita & Weber, Guglielmo, 2007. "“For One More Year with You”: Changes in Compulsory Schooling, Education and the Distribution of Wages in Europe," IZA Discussion Papers 3102, Institute for the Study of Labor (IZA).
  7. Empar Pons & Maria Teresa Gonzalo, 2001. "Returns to Schooling in Spain. How Reliable Are IV Estimates?," Working Papers 446, Queen Mary, University of London, School of Economics and Finance.
  8. Seamus McGuinness, 2003. "University quality and labour market outcomes," Applied Economics, Taylor and Francis Journals, vol. 35(18), pages 1943-1955.
  9. Shandre Thangavelu & Hu Guangzhou, 2006. "Lessons from “Benchmark” Countries: Korea & Ireland," SCAPE Policy Research Working Paper Series 0614, National University of Singapore, Department of Economics, SCAPE.
  10. Deng, Binbin, 2010. "Schooling and Wage Revisited: Does Higher IQ Really Give You Higher Income?," MPRA Paper 23206, University Library of Munich, Germany.
  11. Chris Sakellariou, 2006. "Education policy reform, local average treatment effect and returns to schooling from instrumental variables in the Philippines," Applied Economics, Taylor and Francis Journals, vol. 38(4), pages 473-481.
  12. Shandre M. Thangavelu & Hu Guangzhou, 2006. "Lessons from "benchmark" countries : Korea & Ireland," Labor Economics Working Papers 21820, East Asian Bureau of Economic Research.

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