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The Effect of High School Effort on Future Earnings

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  • Isaac C. Rischall
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    Abstract

    This essay examines the role of studying in determining future wages. Much of the returns to education literature focuses on the extensive margin by determining the benefit of an extra year of schooling. This essay examines the intensive margin. This essay also analyzes other determinants of wages, and how they relate to an individual's studying behavior and education level decisions. The results from estimating a structural model indicate only a negligible relationship between earnings and studying. A second finding suggests ignoring parental income as a determinant of wages considerably overstates the returns to education.

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    File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/CILN/cilnwp30.pdf
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    Bibliographic Info

    Paper provided by McMaster University in its series Canadian International Labour Network Working Papers with number 30.

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    Length: 34 pages
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    Handle: RePEc:mcm:cilnwp:30

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    1. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
    2. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-95, October.
    3. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
    4. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S7-36, October.
    5. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    6. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
    7. O'Neill, June, 1990. "The Role of Human Capital in Earnings Differences between Black and White Men," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 25-45, Fall.
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