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Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach

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  • Yamarik Steven J

    () (California State University at Long Beach)

Abstract

In this paper, we use information from U.S. states to determine the social return to schooling. We estimate a macro-Mincerian model where aggregate earnings (or income) depend upon physical capital, labor, average years of schooling and average labor force experience. We find that the social return to U.S. schooling is 9 to 16 percent, which matches estimates of the private return found in the labor literature. Our results therefore provide evidence that U.S. schooling is indeed productive, but generates no positive externalities.

Suggested Citation

  • Yamarik Steven J, 2008. "Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-16, August.
  • Handle: RePEc:bpj:bejmac:v:8:y:2008:i:1:n:23
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    References listed on IDEAS

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    Cited by:

    1. Isaac Ehrlich & Jong Kook Shin & Yong Yin, 2010. "Human Capital, Endogenous Information Acquisition,and Home Bias in Financial Markets," Working Papers 202010, Hong Kong Institute for Monetary Research.
    2. Monisankar Bishnu & Shresth Garg & Tishara Garg & Tridip Ray, 2018. "Optimal Intergenerational Transfers: Public Education and Pensions," Discussion Papers 18-08, Indian Statistical Institute, Delhi.
    3. Makram El‐Shagi & Steven Yamarik, 2019. "State‐level capital and investment: Refinements and update," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1411-1422, December.
    4. Bishnu, Monisankar, 2013. "Linking consumption externalities with optimal accumulation of human and physical capital and intergenerational transfers," Journal of Economic Theory, Elsevier, vol. 148(2), pages 720-742.
    5. Letícia Xander Russo & Joilson Dias, 2016. "The Health Influence On Returns To Education In Brazil: A Nonlinear Approach," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 200, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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