IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp6588.html
   My bibliography  Save this paper

Causal Returns to Schooling and Individual Heterogeneity

Author

Listed:
  • Pfeiffer, Friedhelm

    () (ZEW Mannheim)

  • Pohlmeier, Winfried F. X.

    () (University of Konstanz)

Abstract

In this paper, human capital investments are evaluated by assuming heterogeneous returns to schooling. We use the potential outcome approach to measure the causal effect of human capital investments on earnings as a continuous treatment effect. Empirical evidence is based on a sample of West German full-time employed males (BIBB/IAB survey on educational and vocational attainment and career 1998/99). Our estimate of the average partial effect (APE) of an additional year of schooling amounts to 8.7%, which is higher than OLS estimates and quite similar to conventional instrumental variable estimates.

Suggested Citation

  • Pfeiffer, Friedhelm & Pohlmeier, Winfried F. X., 2012. "Causal Returns to Schooling and Individual Heterogeneity," IZA Discussion Papers 6588, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6588
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp6588.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Flossmann Anton L. & Pohlmeier Winfried, 2006. "Causal Returns to Education: A Survey on Empirical Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(1), pages 6-23, February.
    2. Michael Gebel & Friedhelm Pfeiffer, 2010. "Educational Expansion and Its Heterogeneous Returns for Wage Workers," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(1), pages 19-42.
    3. Heckman, James J. & Urzúa, Sergio, 2010. "Comparing IV with structural models: What simple IV can and cannot identify," Journal of Econometrics, Elsevier, vol. 156(1), pages 27-37, May.
    4. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
    5. James Heckman & Edward Vytlacil, 1998. "Instrumental Variables Methods for the Correlated Random Coefficient Model: Estimating the Average Rate of Return to Schooling When the Return is Correlated with Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 974-987.
    6. Blechinger, Doris & Pfeiffer, Friedhelm, 1996. "Technological change and skill obsolescence: the case of German apprenticeship training," ZEW Discussion Papers 96-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Felix Büchel & Andries de Grip & Antje Mertens (ed.), 2003. "Overeducation in Europe," Books, Edward Elgar Publishing, number 3054, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Lange & Friedhelm Pfeiffer & Gerard J. den Berg, 2017. "Integrating young male refugees: initial evidence from an inclusive soccer project," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), pages 1-10.
    2. Berg, Gerard van den & Kolb, Michael & Lange, Martin & Pfeiffer, Friedhelm, 2016. "Integrating refugees in the Rhine-Neckar-Region: Initial evidence from an inclusive soccer project," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 149872.
    3. Pfeiffer Friedhelm & Stichnoth Holger, 2015. "Fiskalische und individuelle Bildungsrenditen – aktuelle Befunde für Deutschland," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 393-411, December.
    4. Jens Mohrenweiser & Friedhelm Pfeiffer, 2016. "Zur Entwicklung der studienspezifischen Selbstwirksamkeit in der Oberstufe
      [The development of study-specific self-efficacy during grammar school]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(1), pages 77-95, July.

    More about this item

    Keywords

    returns to schooling; human capital; heterogeneity;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    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:iza:izadps:dp6588. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.