Identifying the Role of Cognitive Ability in Explaining the Level of and Change in the Return to Schooling
AbstractThis paper considers two problems that arise in determining the role of ability in explaining the level of and change in the rate of return to schooling. (1) Ability and schooling are so strongly dependent that it is not possible, over a wide range of variation in schooling and ability, to independently vary these two variables and estimate their separate impacts. (2) The structure of panel data makes it difficult to identify main age and time effects or to isolate crucial education-ability-time interactions needed to assess the role of ability in explaining the rise in the return to education.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7820.
Date of creation: Aug 2000
Date of revision:
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Other versions of this item:
- James Heckman & Edward Vytlacil, 2001. "Identifying The Role Of Cognitive Ability In Explaining The Level Of And Change In The Return To Schooling," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 1-12, February.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-08-07 (All new papers)
- NEP-EDU-2000-07-27 (Education)
- NEP-LAB-2000-08-07 (Labour Economics)
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- Blackburn, McKinley L & Neumark, David, 1993.
"Omitted-Ability Bias and the Increase in the Return to Schooling,"
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- John Cawley & James Heckman & Edward Vytlacil, 1998. "Understanding the Role of Cognitive Ability in Accounting for the Recent Rise in the Economic Return to Education," NBER Working Papers 6388, National Bureau of Economic Research, Inc.
- Murnane, Richard J & Willett, John B & Levy, Frank, 1995.
"The Growing Importance of Cognitive Skills in Wage Determination,"
The Review of Economics and Statistics,
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- Richard J. Murnane & John B. Willett & Frank Levy, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," NBER Working Papers 5076, National Bureau of Economic Research, Inc.
- Rubinstein, Yona & Tsiddon, Daniel, 1999.
"Coping with Technological Progress: The Role of Ability in Making Inequality so Persistent,"
CEPR Discussion Papers
2153, C.E.P.R. Discussion Papers.
- Rubinstein, Y. & Tsiddon, D., 1998. "Coping with Technological Progress: the Role of Ability in Making Inequality so Persistent," Papers 27-98, Tel Aviv.
- Chamberlain, Gary & Griliches, Zvi, 1975. "Unobservables with a Variance-Components Structure: Ability, Schooling, and the Economic Success of Brothers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 422-49, June.
- Jeff Grogger & Eric Eide, 1995. "Changes in College Skills and the Rise in the College Wage Premium," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 280-310.
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