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Heterogeneity in Marginal Non-monetary Returns to Higher Education

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  • Kamhöfer, D.A.
  • Schmitz, H.
  • Westphal, M.

Abstract

In this paper we estimate the effects of college education on cognitive abilities and health exploiting exogenous variation in college availability and student loan regulations. By means of emiparametric local instrumental variables techniques we estimate marginal treatment effects in an environment of essential heterogeneity. The results suggest heterogeneous but always positive effects on cognitive skills and homogeneously positive effects for all health outcomes but mental health, where the effects are around zero throughout. We find that likely mechanisms of positive physical health returns are effects of college education on physically demanding activities on the job and health behavior such as smoking and drinking while mentally more demanding jobs might explain the skill returns.

Suggested Citation

  • Kamhöfer, D.A. & Schmitz, H. & Westphal, M., 2015. "Heterogeneity in Marginal Non-monetary Returns to Higher Education," Health, Econometrics and Data Group (HEDG) Working Papers 15/24, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:15/24
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    Cited by:

    1. Kamhöfer, Daniel A. & Westphal, Matthias, 2017. "Fertility effects of college education: Evidence from the German educational expansion," Ruhr Economic Papers 717, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Giesecke, Matthias & Schuss, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," Ruhr Economic Papers 812, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Cornelissen, Thomas & Dustmann, Christian & Raute, Anna & Schönberg, Uta, 2016. "From LATE to MTE: Alternative methods for the evaluation of policy interventions," Labour Economics, Elsevier, vol. 41(C), pages 47-60.
    4. Westphal, Matthias & Kamhöfer, Daniel A. & Schmitz, Hendrik, 2020. "Marginal college wage premiums under selection into employment," DICE Discussion Papers 341, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    5. Giesecke, Matthias & Schuß, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," IAB Discussion Paper 201919, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Lehnert, Patrick & Pfister, Curdin & Backes-Gellner, Uschi, 2020. "Employment of R&D personnel after an educational supply shock: Effects of the introduction of Universities of Applied Sciences in Switzerland," Labour Economics, Elsevier, vol. 66(C).
    7. Kamhöfer, Daniel A. & Westphal, Matthias, 2019. "Fertility effects of college education: Evidence from the German educational expansion," DICE Discussion Papers 316, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    8. Huzeyfe Torun & Semih Tumen, 2019. "Do vocational high school graduates have better employment outcomes than general high school graduates?," International Journal of Manpower, Emerald Group Publishing, vol. 40(8), pages 1364-1388, November.
    9. Pikos, Anna Katharina, 2017. "Education and work-related mental health - higher educated employees are worse off," Hannover Economic Papers (HEP) dp-611, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    10. Everding, Jakob, 2019. "Heterogeneous spillover effects of children's education on parental mental health," hche Research Papers 2019/18, University of Hamburg, Hamburg Center for Health Economics (hche).
    11. Daniel Kamhoefer & Matthias Westphal, 2017. "Fertility Effects of College Education: Evidence from the German Educational Expansion," CINCH Working Paper Series 1705, Universitaet Duisburg-Essen, Competent in Competition and Health.
    12. Clarke, Damian & Mühlrad, Hanna, 2016. "The Impact of Abortion Legalization on Fertility and Maternal Mortality: New Evidence from Mexico," Working Papers in Economics 661, University of Gothenburg, Department of Economics.
    13. Kamhöfer, Daniel & Westphal, Matthias, 2018. "Fertility Effects of College Education: Evidence from the German Educational Expansion," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181624, Verein für Socialpolitik / German Economic Association.
    14. Daniel Graeber & Daniel D. Schnitzlein, 2019. "The Effect of Maternal Education on Offspring's Mental Health," SOEPpapers on Multidisciplinary Panel Data Research 1028, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Dahmann, Sarah C. & Schnitzlein, Daniel D., 2019. "No evidence for a protective effect of education on mental health," Social Science & Medicine, Elsevier, vol. 241(C).
    16. Elizabeth Lemmon, 2018. "Utilisation of personal care services in Scotland: the influence of unpaid carers," CINCH Working Paper Series 1802, Universitaet Duisburg-Essen, Competent in Competition and Health.
    17. Alene, A.D. & Wossen, T. & Abdoulaye, T., 2018. "Poverty Reduction Effects of Technology Adoption: Evidence from Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276980, International Association of Agricultural Economists.
    18. Benjamin W. Cowan & Nathan Tefft, 2020. "College Access and Adult Health," NBER Working Papers 26685, National Bureau of Economic Research, Inc.
    19. Patrick Lehnert & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2020. "Knowledge Complementarities and Patenting: Do New Universities of Applied Sciences Foster Regional Innovation?," Economics of Education Working Paper Series 0164, University of Zurich, Department of Business Administration (IBW).

    More about this item

    Keywords

    returns to higher education; cognitive abilities; health; marginal treatment effect;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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