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Education returns of wage earners and self-employed workers: Comment

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  • Jordahl, Henrik
  • Poutvaara, Panu
  • Tuomala, Juha

Abstract

In a recent paper, García-Mainar and Montuenga-Gómez [García-Mainar, I. & Montuenga-Gómez, V. M. (2005). Education returns of wage earners and self-employed workers: Portugal vs. Spain. Economics of Education Review, 24(2), 161-170] apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners and the self-employed in Portugal and in Spain. Our examination reveals several problems which relate to the validity and documentation of the instrumental variables, as well as the robustness of the results.

Suggested Citation

  • Jordahl, Henrik & Poutvaara, Panu & Tuomala, Juha, 2009. "Education returns of wage earners and self-employed workers: Comment," Economics of Education Review, Elsevier, vol. 28(5), pages 641-644, October.
  • Handle: RePEc:eee:ecoedu:v:28:y:2009:i:5:p:641-644
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    References listed on IDEAS

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    1. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    2. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    3. Steven D. Levitt, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 319-351.
    4. Garcia-Mainar, Inmaculada & Montuenga-Gomez, Victor M., 2005. "Education returns of wage earners and self-employed workers: Portugal vs. Spain," Economics of Education Review, Elsevier, vol. 24(2), pages 161-170, April.
    5. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
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    Cited by:

    1. Jordahl, Henrik & Poutvaara, Panu & Tuomala, Juha, 2009. "Education returns of wage earners and self-employed workers: Rejoinder," Economics of Education Review, Elsevier, vol. 28(5), pages 648-648, October.
    2. Aarstad Jarle, 2014. "Structural Holes and Entrepreneurial Decision Making," Entrepreneurship Research Journal, De Gruyter, vol. 4(3), pages 1-16, July.

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