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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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    More about this item

    Keywords

    returns to higher education; cognitive abilities; health; marginal treatment effect;
    All these keywords.

    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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