Ability, Schooling Inputs and Earnings: Evidence from the NELS
AbstractUtilizing the National Educational Longitudinal Study data, this paper examines the role of pre-market cognitive and noncognitive abilities, as well as schooling inputs, on young men's earnings. In addition to the conditional mean, we estimate the impacts over the earnings distribution using recently developed (instrumental) quantile regression techniques. Our results show that noncognitive ability is an important determinant of earnings, but the effects are not uniform across the distribution. We find noncognitive ability to be most effective for lower quantiles. Cognitive ability, on the other hand, shows a reversed pattern with more pronounced effects at the upper tail of the earnings distribution. We also find that, on average, pupil-teacher ratio is a significant determinant of earnings. However, similar to ability, the effects are not homogeneous
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Bibliographic InfoPaper provided by University of Nevada, Las Vegas , Department of Economics in its series Working Papers with number 0906.
Length: 39 pages
Date of creation: Mar 2009
Date of revision: Aug 2009
Cognitive Ability; Instrumental Quantile Regression; Measurement Error; Noncognitive Ability; Pupil-Teacher Ratio;
Find related papers by JEL classification:
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-22 (All new papers)
- NEP-EDU-2009-03-22 (Education)
- NEP-LAB-2009-03-22 (Labour Economics)
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