Causal Returns to Schooling and Individual Heterogeneity
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.
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CeMMAP working papers
CWP08/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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- Heckman, James J. & Urzua, Sergio, 2009. "Comparing IV with Structural Models: What Simple IV Can and Cannot Identify," IZA Discussion Papers 3980, Institute for the Study of Labor (IZA).
- Sergio Urzua & James J. Heckman, 2009. "Comparing IV with Structural Models: What Simple IV Can and Cannot Identify," Working Papers 200906, Geary Institute, University College Dublin.
- James J. Heckman & Sergio Urzua, 2009. "Comparing IV With Structural Models: What Simple IV Can and Cannot Identify," NBER Working Papers 14706, National Bureau of Economic Research, Inc.
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"Educational Expansion and Its Heterogeneous Returns for Wage Workers,"
SOEPpapers on Multidisciplinary Panel Data Research
13, DIW Berlin, The German Socio-Economic Panel (SOEP).
- 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.
- Gebel, Michael & Pfeiffer, Friedhelm, 2007. "Educational expansion and its heterogeneous returns for wage workers," ZEW Discussion Papers 07-010, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- 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 518-29, October.
- Anton L. Flossmann & Winfried Pohlmeier, 2006. "Casual Returns to Education: A Survey on Empirical Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(1), pages 6-23, January.
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