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The effect of school inputs on labor market returns that account for selective migration

  • McHenry, Peter

In this paper, I estimate the effect of state school inputs on labor market returns to schooling. The method follows Card and Krueger (1992) and Heckman et al. (1996), but I extend their analysis in two ways. First, I correct state-level returns to schooling for selective migration, adapting a method from Dahl (2002). Second, I use more recent data and assess the degree to which the 1999 labor market capitalized school inputs (with 2000 Census data). Higher state-level school inputs are associated with higher returns to schooling after correcting for selective migration. These positive effects are present in all Census years I study.

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Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 30 (2011)
Issue (Month): 1 (February)
Pages: 39-54

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Handle: RePEc:eee:ecoedu:v:30:y:2011:i:1:p:39-54
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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  1. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," RCER Working Papers 488, University of Rochester - Center for Economic Research (RCER).
  2. Joseph G. Altonji & Thomas A. Dunn, . "Using Siblings to Estimate the Effect of School Quality on Wages," IPR working papers 96-10, Institute for Policy Resarch at Northwestern University.
  3. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291 Elsevier.
  4. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
  5. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
  6. Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 231-50, May.
  7. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  8. David Card & Alan Krueger, 1996. "Labor Market Effects of School Quality: Theory and Evidence," Working Papers 736, Princeton University, Department of Economics, Industrial Relations Section..
  9. Marcotte, Dave E., 2007. "Schooling and test scores: A mother-natural experiment," Economics of Education Review, Elsevier, vol. 26(5), pages 629-640, October.
  10. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-85, November.
  11. Pischke, Jörn-Steffen, 2003. "The Impact of Length of the School Year on Student Performance and Earnings: Evidence from the German Short School Years," IZA Discussion Papers 874, Institute for the Study of Labor (IZA).
  12. Wilson, Kathryn, 2002. "The effects of school quality on income," Economics of Education Review, Elsevier, vol. 21(6), pages 579-588, December.
  13. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  14. Deke, John, 2003. "A study of the impact of public school spending on postsecondary educational attainment using statewide school district refinancing in Kansas," Economics of Education Review, Elsevier, vol. 22(3), pages 275-284, June.
  15. Whitney K. Newey, 2009. "Two-step series estimation of sample selection models," Econometrics Journal, Royal Economic Society, vol. 12(s1), pages S217-S229, 01.
  16. Chaudhary, Latika, 2009. "Education inputs, student performance and school finance reform in Michigan," Economics of Education Review, Elsevier, vol. 28(1), pages 90-98, February.
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