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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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01 Jan 2013
TL;DR: In this paper, the authors present a Table of Table 1.iii Acknowledgements v Table of table 1.1.2.3.4.4] and Table 2.
Abstract: iii Acknowledgements v Table of
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28 Dec 2017
TL;DR: This article used the high-IQ Terman sample to estimate relationships between education, socio-emotional skills, and health-related outcomes that include health behaviors, lifestyles and health measures.
Abstract: We use the high-IQ Terman sample to estimate relationships between education, socioemotional skills, and health-related outcomes that include health behaviors, lifestyles, and health measures acros...
13 citations
Dissertation•
28 Mar 2016
TL;DR: This paper examined the role of differential self-selection and labour market discrimination among migrants from the A8 EU accession countries of Central and Eastern Europe and found that A8 immigrants face a substantially higher risk of over-education in the UK than other recent EU immigrants, and this additional risk remains after taking account of observed characteristics.
Abstract: I investigate the labour market performance of immigrants in the UK. In particular, I aim to advance understanding of the international transferability of qualifications, skills, and experience. I also discuss the roles of differential self-selection and labour market discrimination, and consider immigrant uptake of the native national identity. First, I examine the incidence and wage associations of over-education among migrants to the UK from the ‘A8’ EU accession countries of Central and Eastern Europe. I find that A8 immigrants face a substantially higher risk of over-education in the UK than other recent EU immigrants, and that this additional risk remains after taking account of observed characteristics. I argue that this result is driven by unobserved differences between the groups, arising from distinct self-selection processes associated with the institutional context of the EU accession. Second, I examine how qualifications and the origin of schooling and experience can help us to understand immigrant earnings, and, in particular, the difference between the wages paid to immigrants and natives with apparently similar human capital profiles. I show that accounting for the level of qualification held by immigrants, as well as the source and duration of schooling, causes conditional wage estimates to converge substantially with those of natives. Finally, I examine how variation in the original motives for migration can help us understand the labour market performance of immigrants, and their propensity to adopt the native national identity. On employment and wages, I find that those who originally came as work or student immigrants are the most successful, while family immigrants do less well, and refugees fare the worst. On national identity, I find that those who originally came as refugees and family immigrants are the most likely to identify as British, while work and student immigrants are the least.
13 citations
Posted Content•
TL;DR: In this paper, the authors analyze the problems of regional convergence for the Mexican case and identify externalities inherent to economic development, strengthened by liberalization and globalization, as possible causes of the process.
Abstract: El trabajo analiza la problematica de la convergencia regional en el caso de Mexico. A pesar de que algunos mecanismos de convergencia regional operan, como por ejemplo, el relativo al mayor rendimiento de la inversion educativa en las regiones menos desarrolladas frente a las mas desarrolladas, la evidencia disponible sugiere que en la economia ha operado un proceso de divergencia. Ciertas externalidades consustanciales al desarrollo economico, potenciadas por la liberalizacion y globalizacion, se identifican como posibles causas del proceso. The paper analyzes the problems of regional convergence for the Mexican case. Although some mechanisms of regional converge operate, for instance those related to the greater performance of educational investment in less developed regions before those more developed, the available evidence suggests that in the economy a process of divergence has operated. Certain externalities inherent to economic development, strengthened by liberalization and globalization are identified as possible causes of the process.
13 citations
TL;DR: In this article, the authors adopted the heterogeneous human capital model to estimate rate of return to university education using data from the 1990 and 2000 Taiwan's Manpower Utilization Surveys.
13 citations