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Education policy reform, local average treatment effect and returns to schooling from instrumental variables in the Philippines

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  • Chris Sakellariou

Abstract

A nationally representative dataset from the Philippines is used to derive returns to schooling estimates from instrumental variables, utilizing a supply-side intervention in the education market capable of generating significant changes in schooling. These estimates apply to a subgroup of, mainly, liquidity constrained individuals, in the spirit of the Local Average Treatment Effect (LATE) literature. Returns to schooling estimates which apply to a subgroup of individuals affected by policy intervention may be more interesting from a policy perspective than the return to the 'average' individual. The findings are consistent with other recent evidence suggesting that the causal effect of education, at least for certain subgroups of individuals, is as big or bigger than what is suggested by OLS estimates.

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  • Chris Sakellariou, 2006. "Education policy reform, local average treatment effect and returns to schooling from instrumental variables in the Philippines," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 473-481.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:473-481
    DOI: 10.1080/00036840500367864
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    1. Patrinos, Harry A. & Sakellariou, Chris, 2011. "Quality of Schooling, Returns to Schooling and the 1981 Vouchers Reform in Chile," World Development, Elsevier, vol. 39(12), pages 2245-2256.
    2. Aashish Mehta & Hector Villarreal, 2008. "Why do diplomas pay? An expanded Mincerian framework applied to Mexico," Applied Economics, Taylor & Francis Journals, vol. 40(24), pages 3127-3144.
    3. Chuang, Yih-chyi & Lai, Wei-wen, 2010. "Heterogeneity, comparative advantage, and return to education: The case of Taiwan," Economics of Education Review, Elsevier, vol. 29(5), pages 804-812, October.
    4. Sakai Yoko & Masuda Kazuya, 2020. "Secondary education and international labor mobility: evidence from the natural experiment in the Philippines," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-22, January.
    5. Ma. Laarni D. Revilla & Jonna P. Estudillo, 2022. "The impacts of secondary education reforms on schooling and income of women and men in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 59(1), pages 1-25, June.

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