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Education, earnings, and the ‘Canadian G.I. Bill’

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  • Thomas Lemieux
  • David Card

Abstract

Canadian Second World War veterans benefited from an extensive educational program similar to the U.S. G.I. Bill. Because of differences in military enlistment rates, however, a much lower fraction of Quebec men were eligible for these benefits than men from other provinces. Building on this fact, we analyse inter‐cohort patterns of education and earnings for English‐speaking men from Ontario, using French‐speaking men from Quebec as a control group. We find that the instrumental variables estimates of the return to schooling are typically as big or bigger than the corresponding OLS estimates. JEL Classification: J24, I21 Education, revenus, et le ‘G.I. Bill canadien.’ Les anciens combattants canadiens de la deuxième guerre mondiale ont bénéficié d'un programme d'aide aux études similaire au G.I. Bill américain. Relativement peu de Québécois ont cependant pu bénéficier de ce programme en raison de la faible proportion de ces derniers qui ont fait leur service militaire durant cette période. Sur la base de cette observation, nous analysons les différences intergénérationelles dans la scolarisation et les revenus des Ontariens anglophones en se servant des Québécois francophones comme groupe témoin. Nos résultats indiquent que les estimés du taux de rendements de l'éducation obtenus à l'aide de la méthode des variables instrumentales sont comparables sinon plus élévés que ceux obtenus par moindres carrés ordinaires.

Suggested Citation

  • Thomas Lemieux & David Card, 2001. "Education, earnings, and the ‘Canadian G.I. Bill’," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(2), pages 313-344, May.
  • Handle: RePEc:wly:canjec:v:34:y:2001:i:2:p:313-344
    DOI: 10.1111/0008-4085.00077
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    References listed on IDEAS

    as
    1. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
    2. Imbens, G. & Angrist, J.D., 1992. "Average Causal Response with Variable Treatment Intensity," Harvard Institute of Economic Research Working Papers 1611, Harvard - Institute of Economic Research.
    3. Angrist, Joshua & Krueger, Alan B, 1994. "Why Do World War II Veterans Earn More Than Nonveterans?," Journal of Labor Economics, University of Chicago Press, vol. 12(1), pages 74-97, January.
    4. John Bound & David A. Jaeger, 1996. "On the Validity of Season of Birth as an Instrument in Wage Equations: A Comment on Angrist & Krueger's "Does Compulsory School Attendance Affect Scho," NBER Working Papers 5835, National Bureau of Economic Research, Inc.
    5. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January.
    6. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    7. van der Klaauw, Wilbert, 1997. "A Regression-Discontinuity Evaluation of the Effect of Financial Aid Offers on College Enrollment," Working Papers 97-10, C.V. Starr Center for Applied Economics, New York University.
    8. Joshua D. Angrist, 1990. "The Draft Lottery and Voluntary Enlistment in the Vietnam Era," NBER Working Papers 3514, National Bureau of Economic Research, Inc.
    9. Elchanan Cohn & John Addison, 1998. "The Economic Returns to Lifelong Learning in OECD Countries," Education Economics, Taylor & Francis Journals, vol. 6(3), pages 253-307.
    10. Wooldridge, Jeffrey M., 1997. "On two stage least squares estimation of the average treatment effect in a random coefficient model," Economics Letters, Elsevier, vol. 56(2), pages 129-133, October.
    11. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
    12. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 533-575.
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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