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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 paper used a group-based trajectory approach to identify three groups of children with distinct mathematical abilities trajectories: average abilities (47.6%), high abilities (30.1%), and low abilities (22.3%).
Abstract: This study aims to: i) model the mathematical abilities trajectories of Canadian children from 7 to 15 years and ii) identify risk factors during early childhood for low math skills trajectories. Using a group-based trajectory approach, we identify three groups of children with distinct mathematical abilities trajectories: average abilities (47.6%), high abilities (30.1%), and low abilities (22.3%). The differences between the groups are increasing over time, especially in early adolescence. Multivariate logistic regressions indicate that the children at risk are those who have a mother with a low level of education, low cognitive score at age 4-5, and have parents with poor parenting skills.
01 Jan 2013
TL;DR: The authors analyzed and explained the factors behind the observed differences in skill mismatches (vertical and horizontal) between natives and immigrants in EU countries using microdata from the 2007 wave of the Adult Education Survey (AES).
Abstract: Skill Mismatches in the EU: Immigrants vs. Natives The objective of this paper is to analyse and explain the factors behind the observed differences in skill mismatches (vertical and horizontal) between natives and immigrants in EU countries. Using microdata from the 2007 wave of the Adult Education Survey (AES), different probit models are specified and estimated to analyse differences in the probability of each type of skill mismatch between natives and immigrants. Next, Yun’s decomposition method is used to identify the relative contribution of characteristics and returns to explain the differences between the two groups. Our analysis shows that immigrants are more likely to be skill mismatched than natives, being this difference much larger for vertical mismatch. In this case, the difference is higher for immigrants coming from non-EU countries than for those coming from other EU countries. We find that immigrants from non-EU countries are less valued in the EU labour markets than natives with similar characteristics, a result that is not observed for immigrants from EU countries. These results could be related to the limited transferability of the human capital acquired in non-EU countries. The findings suggest that specific programs to adapt immigrants’ human capital acquired in home country are required to reduce differences in the incidence of skill mismatch and a better integration in the EU labour markets. JEL Classification: J15, J24, J31
01 Jan 2017
TL;DR: This dissertation consists three essays that examines the impact of health and education policy in Indonesia and suggests that broadly expanding compulsory education supported by free tuition programs to higher levels of education would benefit society in general.
Abstract: THREE ESSAYS ON HEALTH AND EDUCATION IN INDONESIA By BONDI ARIFIN DECEMBER 2017 Committee Chair: Dr. Thomas A. Mroz Major Department: Economics Improvement in health, education, and reducing child labor are a widely accepted public policy in the developed as well as developing countries. This dissertation consists three essays that examines the impact of health and education policy in Indonesia. The first essay examines the impact of the existence of limited resource hospitals on medical care utilization and household health expenditures. Limited physical access to facility health care is a primary concern that contributes to high health risks and inadequate medical care in developing countries, primarily in poor areas. The Indonesian government built limited-resource hospitals in poor areas. Differencein-differences and matching-difference-in-differences methodologies were used in exploiting timing implementations of mobile hospital establishments. To do so, I scrape and utilize variables about hospital location and travel distance from many different sources. I find the existence of public hospitals more likely increases outpatient and inpatient in public hospitals, as well as household health expenditures. Also, I find only areas in which new hospitals are located closer than existing hospitals or more transportation alternatives benefit from the intervention. These results suggest that not only broadly expanding facility health centers but also improving infrastructures in poor areas are critical for improving access to health care. The second essay investigates how dependent coverage changes for civil servants' children impacts medical care utilization for Indonesia universal health insurance (BPJS) scheme in 2014. I use a difference-in-differences and triple difference-in-differences methodologies with the third children as a treatment group, and both the first two children and the fourth and afterward children as a control group, by exploiting timing implementation of policy changes in civil servant dependent coverage insurance policy. I employ representative data from Indonesia Family Life Survey (IFLS). I find coverage expansion more likely increases outpatient medical care utilization in public hospitals for eligible children. Also, I separate the impacts of eligibility status and reduction of copayment. Our results are robust to many specifications. These findings suggest that broadly expanding public insurance dependent coverage is beneficial for insurance holders. The last essay the impacts of compulsory education and free tuition programs in Indonesia on child labor and health outcomes for children. I use difference-in-differences and matching difference-in-differences approaches with 13to 15-year-old junior high school students as a treatment group and 16to 18-year-old senior high schoolers as a control group by exploiting timing implementations of compulsory education and free tuition programs. I employ large representative data from Indonesian Household Surveys (SUSENAS). I find compulsory education and free tuition programs significantly reduce the probability of child labor and illness symptoms. The results support the notion that free tuition eases household budget constraints to keep children in school and prohibit them from working, thus leading to children becoming healthier. Our results are robust to many specifications. These findings suggest that broadly expanding compulsory education supported by free tuition programs to higher levels of education would benefit society in general. THREE ESSAYS ON HEALTH AND EDUCATION IN INDONESIA BY BONDI ARIFIN A Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in the Andrew Young School of Policy Studies of Georgia State University GEORGIA STATE UNIVERSITY 2017 Copyright by Bondi Arifin 2017
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TL;DR: In this article, a trabajo se analiza the empleabilidad and ingreso of profesionistas in computacion, comunicaciones and electronica, informatica, and biomedica, considering algunos aspectos sociodemograficos del trabajador.
Abstract: En este trabajo se analiza la empleabilidad y el ingreso de los profesionistas en computacion, comunicaciones y electronica, informatica y biomedica, considerando algunos aspectos sociodemograficos del trabajador. El analisis se realiza a partir de los datos de la Encuesta Nacional de Ocupacion y Empleo (ENOE) 2013. Los resultados se estiman con el modelo de autoseleccion de Heckman seguido con dos modelos de salarios para los hombres y las mujeres respectivamente, finalmente se utiliza el modelo probit para estimar la probabilidad de estar ocupado por area de formacion y sexo. A partir del analisis se concluye que las oportunidades de empleo por campo detallado de formacion academica para los mujeres son practicamente en todos los campos, excepto, electricidad y generacion de energia. Con relacion al ingreso son mejor en los campos de ciencias de la computacion, tecnologias de la informacion, comunicacion y ciencias biomedicas. Para los hombres los ingresos son mejores en los campos de electricidad y generacion de energia y tecnologias de la informacion y la comunicacion, sin embargo en este ultimo la ocupacion es mas alta para las mujeres.