Posted Content•
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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30 Jan 2016
TL;DR: It is found that father’s ability to read reduces infant mortality and the effect of school construction of 1950s on educational and infant health outcomes is evaluated.
Abstract: During the Rana regime in Nepal, rulers mostly prohibited educational practices. The fall of the Rana regime in 1951 introduced formal education in Nepal. The number of primary schools increased from 321 in 1951 to 3,163 in 1961. Using across-district variation in schools constructed and differences across cohorts affected by school construction, I evaluate the effect of school construction of 1950s on educational and infant health outcomes. I find that 1 new school increased ability to read and write by 1.8 and 1.9 percentage points among males and also reduced infant mortality. Using school construction of 1950s as instruments, I find that father’s ability to read reduces infant mortality.
Dissertation•
01 Jan 2016
TL;DR: In this article, the authors examined both pecuniary and non-pecuniary benefits to higher education in the UK and empirically tested the model of demand for higher education.
Abstract: The thesis examines both pecuniary and non-pecuniary benefits to higher education in the UK and empirically tests the model of demand for higher education. The leading theme in this research is the interest in the microeconomic aspect of higher education at empirical level. It sets out to investigate the expectations of individuals in terms of what they can gain from education. It considers various aspects of higher education, including casual effect on pecuniary and non pecuniary returns and demand of higher education participation. This thesis is based on 1958 British National Child Development Survey in the UK. It is composed by three empirical chapters, each on corresponding to a self-contained paper, applying different methodologies and making a unique contribution of these overall objectives. The first empirical chapter focus on the returns to education justified by the importance accorded as an explanation of wage differentials. The second empirical chapter deals with the returns to higher education on health. The third empirical chapter explores the relationship between higher education decision and expected wage income and personal and family characteristics. The main powerful findings of this thesis are: First, the economic return of education rises with the greater disparity of the educational groups as age increases. Females attending higher education usually enjoy higher returns than males, and the gap constantly increases over the years. Second, attending higher education may be an effective way to improve population health and reduce the likelihood of health damaging behaviours. Third, the hypothesis that individuals’ higher education decision only depends on their expectation on future wage income is highly rejected.
Posted Content•
TL;DR: This article developed and estimated a dynamic structural model of labor supply and schooling to investigate the process by which a cohort of males from the NLSY79 accumulate human capital via formal education and labor market participation.
Abstract: This paper develops and estimates a dynamic structural model of labor supply and schooling to investigate the process by which a cohort of males from the NLSY79 accumulate human capital via formal education and labor market participation The theoretical model provides a detailed treatment of the economic costs, benefits and u ncertainties associated with the schooling and labor supply alternatives faced by indiv iduals In particular, the model explicitly accounts for the simultaneous choice of enrolling in sc hool and working It also allows for endogenous leisure choices, intertemporal nonseparabilities in preferences, aggregate skill specific productivity shocks, aggre gate consumption price effects, and individual heterogeneity Times spent on schooling, working, and leisure are treated as continuous choice variables The estimates from the model are then used to conduct simulation exercises to evaluate policies that are aimed at affecting working while enrolled in school and equating school quality across races The results indicate that these policies may have significantly different effects on different r acial groups
31 Oct 2017
TL;DR: In this article, analize przeprowadzono przy uzyciu metody Difference in Differences Propensity Score Matching (DID-PSM), opierając sie na danych z Badania Aktywności Ekonomicznej Józefów (BAEL) dla lat 2001-2013.
Abstract: Celem artykulu jest stwierdzenie, czy ksztalcenie na studiach podyplomowych podejmowane przez osoby pracujące ma wplyw na wysokośc zarobkow w glownym miejscu pracy. Z teoretycznego punktu widzenia mozna oczekiwac pozytywnego wplywu uzupelniania kwalifikacji w tej formie na sytuacje jednostki na rynku pracy. Analize przeprowadzono przy uzyciu metody Difference in Differences Propensity Score Matching (DID-PSM), opierając sie na danych z Badania Aktywności Ekonomicznej Ludności (BAEL) dla lat 2001-2013. Tak dlugi okres analizy pozwolil na porownanie wynikow dla okresu sprzed i po akcesji Polski do UE. Wyniki wskazują, ze studia dyplomowe mialy pozytywny wplyw na wysokośc zarobkow po sześciu miesiącach od ich zakonczenia tylko w latach 2009-2013. Dla calego badanego okresu pozytywne efekty placowe zaobserwowano natomiast w przypadku wybranych grup absolwentow, tj. kobiet i osob zatrudnionych w sektorze publicznym. Ponadto dla calego badanego okresu studia podyplomowe nie mają wplywu na godzinową stawke zarobkow.