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Are Return to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationship

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  • Tobias, J.L.

Abstract

In this paper, I explore the ability-earnings relationships semiparametrically. I find evidence of nonlinearities in these relationships which vary across levels of schooling, and argue that ability-sorting into higher education creates problems for accurately identifing the return to schooling over the full ability support. Over an ability support which is "common" to those with and without a college education, we find that the college log wage premium is increasing for the more able, and this premium grew during the period 1984-1994 for individuals at all points in the ability distribution.

Suggested Citation

  • Tobias, J.L., 2000. "Are Return to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationship," Papers 00-01-12, California Irvine - School of Social Sciences.
  • Handle: RePEc:fth:calirv:00-01-12
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    More about this item

    Keywords

    EDUCATION ; WAGES ; DISTRIBUTION;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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