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Parametric and Semi-parametric Estimations of the Return to Schooling in South Africa

Author

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  • Sonia Bhalotra
  • Claudia Sanhueza

Abstract

This paper estimates return to schooling for african and coloured women in South Africa. It compares parametric and semiparametric estimates of the sample selection model for the case of return to schooling. The parametric estimator is the one proposed by Heckman (1979) and the semiparametric estimator proposed by Newey (1991) and Klein and Spady (1993). It also attempts to correct endogeneity and mesurement error by using instruments of schooling. Following recent literature, the paper uses community variables primary and secondary school proximity and availability as instruments. Using instrumental variables increases the return to schooling substantially. Parametric corrections does not change the results but semiparametric corrections increases the return even more

Suggested Citation

  • Sonia Bhalotra & Claudia Sanhueza, 2004. "Parametric and Semi-parametric Estimations of the Return to Schooling in South Africa," Econometric Society 2004 Latin American Meetings 294, Econometric Society.
  • Handle: RePEc:ecm:latm04:294
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    References listed on IDEAS

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    9. Newey, Whitney K & Powell, James L & Walker, James R, 1990. "Semiparametric Estimation of Selection Models: Some Empirical Results," American Economic Review, American Economic Association, vol. 80(2), pages 324-328, May.
    10. Uusitalo, R. & Conneely, K., 1998. "Estimating Heterogeneous Treatment Effects in the Becker Schooling Model," University of Helsinki, Department of Economics 435, Department of Economics.
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    More about this item

    Keywords

    return to schooling; sample selection bias; semiparametric regression; instrumental variables; south africa;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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