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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: In this article, the authors derived two testable propositions from the theoretical literature on the relation between wealth ownership and stratification processes with the aim of explaining the inequality of opportunities for earnings acquisition.
19 citations
01 Jan 2005
19 citations
01 Jan 2006
TL;DR: In this paper, the authors discuss the large literature and numerous issues regarding education-related differences in income in the U.S. They use census data to document the overall increase in education related income differences over the past 60 years for several income measures.
Abstract: This chapter discusses the large literature and numerous issues regarding education-related differences in income in the U.S. Early analyses of skill-related differences compared the earnings of workers across occupations. The general consensus of these investigations was that skill premiums narrowed substantially between 1900 and 1950. The large increase in the supply of high-school graduates relative to the increased demand for skilled workers is the likely explanation. Following the 1940 Decennial Census, which collected information on educational attainment and on earned income and time worked, empirical analyses concentrated directly on education-related differences in earnings. The human capital revolution of the late 1950s/early 1960s greatly expanded the research on education and income and shifted the focus to wages. The human capital approach modeled income as endogenous and sought to understand the variation in earnings by providing a framework for estimating the returns to education and experience. Recent analyses of education and wages have built on this foundation and have been embedded in a large literature that seeks to document and understand the substantial increase in wage inequality over the last 40 years. The consensus is that increases in the demand for skill are the main culprit, though the reasons for such increases are still an open question. We use census data to document the overall increase in education-related income differences over the past 60 years for several income measures. We also document concomitant changes in enrollment and provide a preliminary analysis suggesting that enrollment has responded to the increase in education–wage premiums. We use NLSY data to document the variation in enrollment patterns for those who attend college and to show how these differences are related to pre-schooling characteristics and to post-schooling earnings. We conclude with a brief discussion of the main issues for future research raised throughout the chapter.
19 citations
TL;DR: Knowing about HT among adolescents remains unsatisfactory and random, which indicates the necessity for routine education in this field, especially as it applies to HT symptoms, and the consideration of such elements as blood pressure measurement and family history of HT in education programs can improve their efficiency.
Abstract: Hypertension (HT) amongst adolescents remains a vital issue of both a medical and social nature. There is a lack of data regarding the factors influencing the awareness of the disease among the youth. The aim of this study was to evaluate the knowledge about HT among adolescents and its level corresponding to the selected demographic, environmental and medical factors. The study was carried out among 250 adolescents of secondary schools. The authors’ questionnaire poll and the psychological tests Personal Values List (PVL) and Personal Competence Scale (PCS) were performed. Only 13.2% of the youth surveyed displayed the “medium” level (defined below) of HT knowledge. Most of them present satisfactory knowledge about the causes of HT. The children from urban areas generally displayed better knowledge about HT than their peers from rural regions. Only the children who had had their blood pressure previously examined displayed good knowledge about HT. The most frequently indicated source of this knowledge was school; however, its level still remains low. There was no significant association between the level of global knowledge about HT and the feeling of one’s own competences and considering the category “good health” an important personal value. Knowledge about HT among adolescents remains unsatisfactory and random, which indicates the necessity for routine education in this field, especially as it applies to HT symptoms. It seems that the consideration of such elements as blood pressure measurement and family history of HT in education programs can improve their efficiency.
19 citations
TL;DR: This article assess the labor market returns of a substantial skill upgrade: college enrollment of the vocationally trained, non-traditional students who do not have the formal entry requirement, and assess the performance of such students.
Abstract: In this paper, I assess labor market returns of a substantial skill upgrade: college enrollment of the vocationally trained, non-traditional students who do not have the formal entry requirement. U...
19 citations