Are Returns to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationships
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 identifying 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. Further, the growth of this wage premium appears to have followed a ``smoother'' path for high-ability individuals than individuals of lower ability.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12016.
Date of creation: 01 Jan 2001
Date of revision:
Publication status: Published in OXFORD BULLETIN OF ECONOMICS AND STATISTICS 2001, vol. 61, pp. 1-29
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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- Tobias, J.L., 2000. "Are Return to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationship," Papers 00-01-12, California Irvine - School of Social Sciences.
- 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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