Returns to Education and Individual Heterogeneity
In this paper, human capital investments are evaluated by assuming heterogeneous returns to education. 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 from the ?BIBB/IAB-Strukturerhebung 1998/99.? Our estimate of the average treatment effect of an additional year of schooling (ATE) amounts to 8.7%, which is quite similar to conventional instrumental variable estimates.
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"Estimating the Effects of Family Background on the Return to Schooling,"
University of California at Santa Barbara, Economics Working Paper Series
qt2qm3867s, Department of Economics, UC Santa Barbara.
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