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The causal effect of education on earnings
TL;DR: This paper surveys the recent literature on the causal relationship between education and earnings and concludes that the average (or average marginal) return to education is not much below the estimate that emerges from a standard human capital earnings function fit by OLS.
Abstract: This paper surveys the recent literature on the causal relationship between education and earnings. I focus on four areas of work: theoretical and econometric advances in modelling the causal effect of education in the presence of heterogeneous returns to schooling; recent studies that use institutional aspects of the education system to form instrumental variables estimates of the return to schooling; recent studies of the earnings and schooling of twins; and recent attempts to explicitly model sources of heterogeneity in the returns to education. Consistent with earlier surveys of the literature, I conclude that the average (or average marginal) return to education is not much below the estimate that emerges from a standard human capital earnings function fit by OLS. Evidence from the latest studies of identical twins suggests a small upward "ability" bias -- on the order of 10%. A consistent finding among studies using instrumental variables based on institutional changes in the education system is that the estimated returns to schooling are 20-40% above the corresponding OLS estimates. Part of the explanation for this finding may be that marginal returns to schooling for certain subgroups -- particularly relatively disadvantaged groups with low education outcomes -- are higher than the average marginal returns to education in the population as a whole.
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TL;DR: This novel effort highlighted the complexity of breast cancer etiology, revealed areas of challenge in the methodology of developing complex systems models, and suggested additional areas for further study.
Abstract: Background: Breast cancer has a complex etiology that includes genetic, biologic, behavioral, environmental and social factors. Etiologic factors are frequently studied in isolation with adjustment for confounding, mediating and moderating effects of other factors. A complex systems model approach may present a more comprehensive picture of the multi-factorial etiology of breast cancer. Methods: We took a transdisciplinary approach with experts from relevant fields to develop a conceptual model of the etiology of postmenopausal breast cancer. The model incorporated evidence of both the strength of association and the quality of the evidence. We operationalized this conceptual model through a mathematical simulation model with a subset of variables, namely, age, race/ethnicity, age at menarche, age at first birth, age at menopause, obesity, alcohol consumption, income, tobacco use, use of hormone therapy (HT) and BRCA1/2 genotype. Results. In simulating incidence for California in 2000, the separate impact of individual variables was modest, but reduction in HT, increase in the age at menarche, and to a lesser extent reduction in excess BMI >30 kg/m2 were more substantial. Conclusions: Complex systems models can yield new insights on the etiologic factors involved in postmenopausal breast cancer. Modification of factors at a population level may only modestly affect risk estimates, while still having an important impact on the absolute number of women affected. Impact: This novel effort highlighted the complexity of breast cancer etiology, revealed areas of challenge in the methodology of developing complex systems models and suggested additional areas for further study.
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TL;DR: In this paper, a dynamic programming model of schooling decisions is used to obtain a number of treatment effects, including the local average treatment effect (LATE), without imposing separability between individual specific heterogeneity and schooling choices and are therefore not subject to a "monotonicity" restriction.
27 citations
TL;DR: The authors explored the disjuncture between refugee's pre-migratory educational aspirations and their everyday encounters with urban public schools and found that the divergences between the two were significant.
Abstract: This article explores the disjuncture between refugee's pre-migratory educational aspirations and their everyday encounters with urban public schools. This study engages with two main quest...
27 citations
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TL;DR: In this paper, the authors identify and characterize certain relationships that might appear between the access to education and the labour market outcomes, and emphasize several aspects of education influencing labour market outcome pointing out which are the main outcomes impacted by education.
Abstract: The paper aims to identify and characterize certain relationships that might appear between the access to education and the labour market outcomes. It emphasizes several aspects of education influencing labour market outcomes pointing out which are the main outcomes impacted by education. The analysis is focused on 32 European countries, while data on United States and Japan are also considered. Within this study, the access to education is defined in terms of participation and investments (expenditure on education and research, financial aid to students, funding of education). Labour market outcomes are assessed mainly using different employment/ unemployment rates as well as elements of wages and earnings. The findings show that the higher one's level of education, the better one's chances of getting a job and keeping the status of employed person in times of crisis on labour market. A higher participation in education is not necessarily associated with a higher employment rate, since the entry on the labour market occurs for some individuals as an alternative to continuing their education.
27 citations
14 Jan 2012
TL;DR: In this article, the authors present new evidence of the role of higher education in social mobility, emphasizing the importance of analyzing the working conditions of those individuals who have recently undergone higher education.
Abstract: espanolEste articulo presenta nueva evidencia del rol del sistema de educacion superior como un mecanismo de movilidad social. La vision es solo economica, poniendo enfasis en las condiciones laborales de quienes han pasado por el sistema de educacion superior y la rentabilidad economica asociada a esta decision. Para un porcentaje importante de la poblacion, particularmente aquellos que no se titulan, el paso por el sistema de educacion superior puede no significar mejores condiciones economicas que las que hubiesen tenido en caso de no haber pasado por el. El analisis de este articulo demuestra la urgencia de presentar mas y mejor evidencia respecto del verdadero rol del sistema de educacion superior como generador de movilidad social. ?Contribuye el sistema de educacion superior a la movilidad social? Por supuesto que si, toda vez que este sea de calidad y el estudiante tenga la capacidad para aprovecharlo. EnglishThis paper presents new evidence of the role of higher education in social mobility. Based on simple economic principles, the text emphasizes the importance of analyzing the working conditions of those individuals who have recently gone through the system of higher education in Chile. The empirical results show that for a significant fraction, particularly those who do complete their degree, having gone through the system of higher education may not translate into better economic conditions. The analysis demonstrates the urgency of presenting more precise and comprehensive evidence of the true role of the system of higher education as driver of social mobility. Does the system of higher education contribute to social mobility? Of course it does, as long as the quality of education is secured and the student has the capacity to take advantage of it.
27 citations