IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_9681.html
   My bibliography  Save this paper

A Partial Identification Approach to Identifying the Determinants of Human Capital Accumulation: An Application to Teachers

Author

Listed:
  • Nirav Mehta

Abstract

This paper views teacher quality through the human capital perspective. Teacher quality exhibits substantial growth over teachers’ careers, but why it improves is not well understood. I use a human capital production function nesting On-the-Job-Training (OJT) and Learning-by-Doing (LBD) and experimental variation from Glewwe et al. (2010), a teacher incentive pay experiment in Kenya, to discern the presence and relative importance of these forces. The identified set for the OJT and LBD components has a closed-form solution, which depends on experimentally estimated average treatment effects. The results provide evidence of an LBD component, as well as an informative upper bound on the OJT component.

Suggested Citation

  • Nirav Mehta, 2022. "A Partial Identification Approach to Identifying the Determinants of Human Capital Accumulation: An Application to Teachers," CESifo Working Paper Series 9681, CESifo.
    • Handle: RePEc:ces:ceswps:_9681
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9681.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Matteo Bobba & Tim Ederer & Gianmarco León-Ciliotta & Christopher A. Neilson & Marco Nieddu, 2021. "Teacher compensation and structural inequality: Evidence from centralized teacher school choice in Perú," Economics Working Papers 1788, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, March.
    3. Hiroaki Kaido & Francesca Molinari & Jörg Stoye, 2019. "Confidence Intervals for Projections of Partially Identified Parameters," Econometrica, Econometric Society, vol. 87(4), pages 1397-1432, July.
    4. James Heckman & Lance Lochner & Ricardo Cossa, 2002. "Learning-By-Doing Vs. On-the-Job Training: Using Variation Induced by the EITC to Distinguish Between Models of Skill Formation," NBER Working Papers 9083, National Bureau of Economic Research, Inc.
    5. Joachim Freyberger, 2021. "Normalizations and misspecification in skill formation models," Papers 2104.00473, arXiv.org, revised Jul 2022.
    6. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja & Tristan Zajonc, 2011. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 29-54, July.
    7. Podgursky, Michael & Springer, Matthew, 2011. "Teacher Compensation Systems in the United States K-12 Public School System," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(1), pages 165-192, March.
    8. Harris, Douglas N. & Sass, Tim R., 2011. "Teacher training, teacher quality and student achievement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 798-812, August.
    9. Haley, William J, 1976. "Estimation of the Earnings Profile from Optimal Human Capital Accumulation," Econometrica, Econometric Society, vol. 44(6), pages 1223-1238, November.
    10. Papay, John P. & Kraft, Matthew A., 2015. "Productivity returns to experience in the teacher labor market: Methodological challenges and new evidence on long-term career improvement," Journal of Public Economics, Elsevier, vol. 130(C), pages 105-119.
    11. Barbara Biasi, 2021. "The Labor Market for Teachers under Different Pay Schemes," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 63-102, August.
    12. Shaw, Kathryn L, 1989. "Life-Cycle Labor Supply with Human Capital Accumulation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 431-456, May.
    13. James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    14. Chris Robinson, 2018. "Occupational Mobility, Occupation Distance, and Specific Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 53(2), pages 513-551.
    15. Tamer, Elie, 2010. "Partial Identification in Econometrics," Scholarly Articles 34728615, Harvard University Department of Economics.
    16. Shintaro Yamaguchi, 2012. "Tasks and Heterogeneous Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 1-53.
    17. Burhanettin Kuruscu, 2006. "Training and Lifetime Income," American Economic Review, American Economic Association, vol. 96(3), pages 832-846, June.
    18. Stinebrickner, Todd R, 2001. "A Dynamic Model of Teacher Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 196-230, January.
    19. Guido W. Imbens & Charles F. Manski, 2004. "Confidence Intervals for Partially Identified Parameters," Econometrica, Econometric Society, vol. 72(6), pages 1845-1857, November.
    20. Timothy N. Bond & Kevin Lang, 2013. "The Evolution of the Black-White Test Score Gap in Grades K–3: The Fragility of Results," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1468-1479, December.
    21. Jorg Stoye, 2009. "More on Confidence Intervals for Partially Identified Parameters," Econometrica, Econometric Society, vol. 77(4), pages 1299-1315, July.
    22. Barbara Biasi & Chao Fu & John Stromme, 2021. "Equilibrium in the Market for Public School Teachers: District Wage Strategies and Teacher Comparative Advantage," NBER Working Papers 28530, National Bureau of Economic Research, Inc.
    23. C. Kirabo Jackson & Jonah E. Rockoff & Douglas O. Staiger, 2014. "Teacher Effects and Teacher-Related Policies," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 801-825, August.
    24. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    25. Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 11-44, August.
    26. Del Bono, Emilia & Kinsler, Josh & Pavan, Ronni, 2020. "A Note on the Importance of Normalizations in Dynamic Latent Factor Models of Skill Formation," IZA Discussion Papers 13714, Institute of Labor Economics (IZA).
    27. Jere R. Behrman & Michela M. Tincani & Petra E. Todd & Kenneth I. Wolpin, 2016. "Teacher Quality in Public and Private Schools under a Voucher System: The Case of Chile," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 319-362.
    28. Eric A. Hanushek & Margaret E. Raymond, 2005. "Does school accountability lead to improved student performance?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 297-327.
    29. Maxim Poletaev & Chris Robinson, 2008. "Human Capital Specificity: Evidence from the Dictionary of Occupational Titles and Displaced Worker Surveys, 1984-2000," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 387-420, July.
    30. Karthik Muralidharan & Venkatesh Sundararaman, 2011. "Teacher Performance Pay: Experimental Evidence from India," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 39-77.
    31. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
    32. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates," American Economic Review, American Economic Association, vol. 104(9), pages 2593-2632, September.
    33. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    34. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352-352.
    35. Ben Ost, 2014. "How Do Teachers Improve? The Relative Importance of Specific and General Human Capital," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 127-151, April.
    36. Blinder, Alan S & Weiss, Yoram, 1976. "Human Capital and Labor Supply: A Synthesis," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 449-472, June.
    37. Wiswall, Matthew, 2013. "The dynamics of teacher quality," Journal of Public Economics, Elsevier, vol. 100(C), pages 61-78.
    38. Scott A. Imberman & Michael F. Lovenheim, 2015. "Incentive Strength and Teacher Productivity: Evidence from a Group-Based Teacher Incentive Pay System," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 364-386, May.
    39. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 1, number 1, June.
    40. Brown, Charles, 1976. "A Model of Optimal Human-Capital Accumulation and the Wages of Young High School Graduates," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 299-316, April.
    41. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 2, number 2, June.
    42. Shaw, Kathryn & Lazear, Edward P., 2008. "Tenure and output," Labour Economics, Elsevier, vol. 15(4), pages 704-723, August.
    43. Carl Sanders & Christopher Taber, 2012. "Life-Cycle Wage Growth and Heterogeneous Human Capital," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 399-425, July.
    44. Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August.
    45. Kareem Haggag & Brian McManus & Giovanni Paci, 2017. "Learning by Driving: Productivity Improvements by New York City Taxi Drivers," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 70-95, January.
    46. Elie Tamer, 2010. "Partial Identification in Econometrics," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 167-195, September.
    47. Sherwin Rosen, 1972. "Learning and Experience in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 7(3), pages 326-342.
    48. Hanushek, Eric, 1971. "Teacher Characteristics and Gains in Student Achievement: Estimation Using Micro Data," American Economic Review, American Economic Association, vol. 61(2), pages 280-288, May.
    49. Robert J. Willis, "undated". "Wage Determinants: A Survey & Reinterpretation of Human Capital Earnings Functions," University of Chicago - Population Research Center 85-9, Chicago - Population Research Center.
    50. Cook, Jason B. & Mansfield, Richard K., 2016. "Task-specific experience and task-specific talent: Decomposing the productivity of high school teachers," Journal of Public Economics, Elsevier, vol. 140(C), pages 51-72.
    51. Michela M. Tincani, 2021. "Teacher labor markets, school vouchers, and student cognitive achievement: Evidence from Chile," Quantitative Economics, Econometric Society, vol. 12(1), pages 173-216, January.
    52. Blandin, Adam, 2018. "Learning by Doing and Ben-Porath: Life-cycle Predictions and Policy Implications," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 220-235.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johnston, Andrew C., 2021. "Preferences, Selection, and the Structure of Teacher Pay," IZA Discussion Papers 14831, Institute of Labor Economics (IZA).
    2. Nirav Mehta, 2019. "Measuring quality for use in incentive schemes: The case of “shrinkage” estimators," Quantitative Economics, Econometric Society, vol. 10(4), pages 1537-1577, November.
    3. Carl Sanders & Christopher Taber, 2012. "Life-Cycle Wage Growth and Heterogeneous Human Capital," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 399-425, July.
    4. Wedel, Katharina, 2021. "Instruction time and student achievement: The moderating role of teacher qualifications," Economics of Education Review, Elsevier, vol. 85(C).
    5. Michela M. Tincani, 2021. "Teacher labor markets, school vouchers, and student cognitive achievement: Evidence from Chile," Quantitative Economics, Econometric Society, vol. 12(1), pages 173-216, January.
    6. Nirav Mehta, 2019. "Measuring quality for use in incentive schemes: The case of “shrinkage” estimators," Quantitative Economics, Econometric Society, vol. 10(4), pages 1537-1577, November.
    7. Cook, Jason B. & Mansfield, Richard K., 2016. "Task-specific experience and task-specific talent: Decomposing the productivity of high school teachers," Journal of Public Economics, Elsevier, vol. 140(C), pages 51-72.
    8. Dhushyanth Raju, 2017. "Public School Teacher Management in Sri Lanka," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(1), pages 39-63, March.
    9. Derek Neal, 2011. "The Design of Performance Pay in Education," NBER Working Papers 16710, National Bureau of Economic Research, Inc.
    10. Ralph Stinebrickner & Todd Stinebrickner & Paul Sullivan, 2019. "Job Tasks, Time Allocation, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 399-433.
    11. Burhanettin Kuruscu, 2006. "Training and Lifetime Income," American Economic Review, American Economic Association, vol. 96(3), pages 832-846, June.
    12. Andrew Agopsowicz & Chris Robinson & Ralph Stinebrickner & Todd Stinebrickner, 2020. "Careers and Mismatch for College Graduates: College and Noncollege Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1194-1221.
    13. Jose Maria Cabrera & Dinand Webbink, 2020. "Do Higher Salaries Yield Better Teachers and Better Student Outcomes?," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1222-1257.
    14. Michael Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Equilibrium and Student Achievement," CESifo Working Paper Series 9551, CESifo.
    15. Sorensen, Lucy C. & Holt, Stephen B., 2021. "Sorting it Out: The Effects of Charter Expansion on Teacher and Student Composition at Traditional Public Schools," Economics of Education Review, Elsevier, vol. 82(C).
    16. Magnac, Thierry & Roux, Sébastien, 2021. "Heterogeneity and wage inequalities over the life cycle," European Economic Review, Elsevier, vol. 134(C).
    17. Rita Ginja & Julie Riise & Barton Willage & Alexander L.P. Willén, 2022. "Does Your Doctor Matter? Doctor Quality and Patient Outcomes," CESifo Working Paper Series 9788, CESifo.
    18. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    19. Dinand Webbink & José María Cabrera, 2016. "Do higher salaries yield better teachers and better student outcomes?," Documentos de Trabajo/Working Papers 1604, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    20. Rupert, Peter & Zanella, Giulio, 2015. "Revisiting wage, earnings, and hours profiles," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 114-130.

    More about this item

    Keywords

    human capital; teacher quality; on-the-job training; learning-by-doing; partial identification;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_9681. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.