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Partial Identification and Bound Estimation of the Average Treatment Effect of Education on Earnings for South Africa

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  • Martine Mariotti
  • Juergen Meinecke

Abstract

type="main" xml:id="obes12059-abs-0001"> We partially identify the average treatment effect of education on earnings and non-parametrically estimate its upper bound for African, Coloured (mixed race) and White males in South Africa. We address endogenous selection into education, cohort effects and endogenous selection into work. Using the September 2007 South African Labour Force Survey, the upper bound estimates are considerably lower than existing parametric point estimates of the return to education. As a lesson, policy makers should focus less on increasing the amount of education obtained by Africans and Coloureds, but rather on measures that can grow the return to existing levels of education.

Suggested Citation

  • Martine Mariotti & Juergen Meinecke, 2015. "Partial Identification and Bound Estimation of the Average Treatment Effect of Education on Earnings for South Africa," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(2), pages 210-233, April.
    • Handle: RePEc:bla:obuest:v:77:y:2015:i:2:p:210-233
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    File URL: http://hdl.handle.net/10.1111/obes.2015.77.issue-2
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    Cited by:

    1. Das, Tirthatanmoy & Polachek, Solomon, 2017. "Micro Foundations of Earnings Differences," IZA Discussion Papers 10922, Institute of Labor Economics (IZA).
    2. Nobuyoshi Kikuchi, 2017. "Intergenerational Transmission of Education in Japan: Nonparametric Bounds Analysis with Multiple Treatments," ISER Discussion Paper 1011, Institute of Social and Economic Research, Osaka University.
    3. Xu, Chen & Liu, Xiao, 2023. "The economic value of language in China: How important is Mandarin proficiency in the Chinese labor market? A bounding approach," Labour Economics, Elsevier, vol. 84(C).

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