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Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting

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  • Mohit Agrawal
  • Joseph G. Altonji
  • Richard K. Mansfield

Abstract

We extend Altonji and Mansfield’s control function approach to allow for multiple group levels and complementarities. Our analysis provides a foundation for a causal interpretation of multilevel mixed effects models in the presence of sorting. In our empirical application, we obtain lower-bound estimates of the importance of school and commuting zone inputs for education and wages. A school/location combination at the 90th versus 10th percentile of the school/location quality distribution increases high school graduation and college enrollment probability by at least .06 and .17, respectively. Treatment effects are heterogeneous across subgroups, primarily due to nonlinearity in the educational attainment model.

Suggested Citation

  • Mohit Agrawal & Joseph G. Altonji & Richard K. Mansfield, 2019. "Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting," Journal of Labor Economics, University of Chicago Press, vol. 37(S1), pages 11-83.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/701012
    DOI: 10.1086/701012
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    3. Jean-William Laliberté, "undated". "Long-term Contextual Effects in Education: Schools and Neighborhoods," Working Papers 2019-01, Department of Economics, University of Calgary.

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    More about this item

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • 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
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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