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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 2007
TL;DR: In this article, the authors describe the process by which brain architecture is formed in very young children, with special attention to the important influence of early experiences on the production of a weak or sturdy foundation for future development, and integrate this scientific knowledge with the identification of those factors from the program evaluation literature that appear to offer the best course toward positive outcomes for children.
Abstract: Executive Summary I t is widely recognized that the path to our nation's future prosperity and security begins with the well-being of all our children. To this end, one of the most important tasks facing policymakers is to choose wisely among strategies that address the needs of our youngest children and their families. Until now, confusing messages about which strategies actually can improve children's life chances have presented enormous challenges to this decision-making process. As scientists, we believe that advances in the science of early childhood and early brain development, combined with the findings of four decades of rigorous program evaluation research, can now provide a strong foundation upon which policymakers and civic leaders with diverse political values can design a common, effective, and politically viable agenda. With this goal in mind, we describe in this report the process by which brain architecture is formed in very young children, with special attention to the important influence of early experiences on the production of a weak or sturdy foundation for future development, and integrate this scientific knowledge with the identification of those factors from the program evaluation literature that appear to offer the best course toward positive outcomes for children. We believe that this combination of neuroscience, child development research, and program evaluation data can provide an informed and pragmatic framework for those engaged in policy design and implementation. This paper builds on a process of systematic analysis that began with the publication in 2000 of a landmark report by the National Academy of Sciences entitled From Neurons to Neighborhoods: The Science of Early Childhood Development, followed by the ongoing work of the National Scientific Council on the Developing Child and the National Forum on Early Childhood Program Evaluation, both of which are based at the Center on the Developing Child at Harvard University. These groups of scientists and scholars engage in active debate about what the rapidly advancing biological and social sciences do and do not say about early childhood, brain development, and the impact of intervention programs. As agreement is reached on each issue, the groups integrate findings across disciplines and communicate this integrated information to policy-makers and civic leaders to bring accurate knowledge to bear on public decision-making aimed at enhancing children's learning, behavior, and health. Neuroscience and child development research address the why and what questions about investing in young children. The applied sciences of intervention and …
145 citations
TL;DR: It is concluded that there is a robust and economically meaningful relationship between early-life conditions and well-being throughout the life cycle, as measured by adult health, educational attainment, labor market attachment, and other indicators of socioeconomic status.
Abstract: Mounting evidence across different disciplines suggests that early-life conditions can have consequences on individual outcomes throughout the life cycle. Relative to other developed countries, the United States fares poorly on standard indicators of early-life health, and this disadvantage may have profound consequences not only for population well-being, but also for economic growth and competitiveness in a global economy. In this paper, we first discuss the research on the strength of the link between early-life health and adult outcomes, and then provide an evidence-based review of the effectiveness of existing U.S. policies targeting the early-life environment. We conclude that there is a robust and economically meaningful relationship between early-life conditions and well-being throughout the life cycle, as measured by adult health, educational attainment, labor market attachment, and other indicators of socioeconomic status. However, there is some variation in the degree to which current policies in the United States are effective in improving early-life conditions. Among existing programs, some of the most effective are the Special Supplemental Program for Women, Infants, and Children (WIC), home visiting with nurse practitioners, and high-quality, center-based early-childhood care and education. In contrast, the evidence on other policies such as prenatal care and family leave is more mixed and limited.
144 citations
04 Jul 2007
TL;DR: OECD found that home experiences such as home experiences, including political conversations with parents and keeping up with the news, were more influential for influencing CSE than civic education classes as mentioned in this paper.
Abstract: OECD. for influencing CSE than civic education classes (these factors are discussed in further detail in Chapter 4). Learning outside of the school such as home experiences, including political conversations with parents and keeping up withn...
143 citations
TL;DR: In this article, the role played by the distance separating high-school students from postsecondary institutions, with particular focus on the choice between college and university attendance, has been investigated.
Abstract: It is already known that students from lower-income families are less likely to pursue postsecondary studies. This study contributes to our knowledge of postsecondary access by focusing on the role played by the distance separating high-school students from postsecondary institutions, with particular focus on the choice between college and university attendance. Distance to school may act as a deterrent to attending by virtue of relocation costs, especially if the student is from a lower-income family. The study findings support the notion that increased distance to school is associated with an access gap, even above and beyond the gap that has been linked to family income. Specifically, increased distance to university is associated with lower university attendance, and a larger tendency to attend the local college instead. This relationship is found to be much stronger in lower-income families.
143 citations
Posted Content•
TL;DR: In this paper, the authors present estimates of the impacts of Job Corps on participants' employment and related outcomes during the 48 months after random assignment, and show that participants were more likely to be employed.
Abstract: Presents estimates of the impacts of Job Corps on participants' employment and related outcomes during the 48 months after random assignment.
143 citations