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Author: Kennedy, Kendall J.
Resulting in 2 citations.
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Kennedy, Kendall J. |
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Hidden Schooling: Endogenous Measurement Error and Bias in Education and Labor Market Experience Journal of Population Economics published online (14 September 2022): DOI: 10.1007/s00148-022-00918-w. Also: https://link.springer.com/article/10.1007/s00148-022-00918-w Cohort(s): NLSY79 Young Adult, NLSY97 Publisher: Springer Keyword(s): Grade Retention/Repeat Grade; Labor Market Outcomes; Methods/Methodology Permission to reprint the abstract has not been received from the publisher. Since 1980, 25% of US students repeated a grade during their academic career. Despite this, few economists account for retention when measuring education and experience, causing bias when retention is correlated with other regressors of interest. Rising minimum dropout ages since 1960 have increased retention, causing positive bias in 2SLS estimates of the returns to education. Retention also causes endogenous measurement error in potential experience. In addition to distorting experience-wage profiles across countries, this endogenous measurement error causes the residual Black-White wage gap and the returns to a high school diploma to be overstated. Proxying for age instead of potential experience reduces this bias, suggesting age, not potential experience, should be a standard control variable. |
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Bibliography Citation
Kennedy, Kendall J. "Hidden Schooling: Endogenous Measurement Error and Bias in Education and Labor Market Experience." Journal of Population Economics published online (14 September 2022): DOI: 10.1007/s00148-022-00918-w.
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Kennedy, Kendall J. |
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Hidden Schooling: Repeated Grades and the Returns to Education and Experience Presented: Chicago IL, Association for Public Policy Analysis and Management (APPAM) Annual Fall Research Conference, November 2017 Cohort(s): Children of the NLSY79, NLSY79 Young Adult Publisher: Association for Public Policy Analysis and Management (APPAM) Keyword(s): Common Core of Data (CCD); Educational Returns; Geocoded Data; Grade Retention/Repeat Grade; Modeling, Instrumental Variables Permission to reprint the abstract has not been received from the publisher. This study estimates the prevalence of ninth grade repeating and examines how recent growth in ninth grade repeating and how grade repeating in general introduce bias in estimation of the returns to education and experience. Using the National Center for Education Statistics' Common Core of Data, I construct estimates of ninth grade repeating rates for each state from 1965-2012. Since the late 1980s, about 10 percent of all public high school students repeated the ninth grade at least once. I then show that 10 percent of the growth in ninth grade repeating can be attributed to changes in Compulsory Schooling Laws (CSLs) over the past 50 years. The rise in ninth grade repeating has important implications for estimation of the returns to education and experience. Using the NLSY79 Children, I estimate the returns to education using CSLs and quarter of birth as instrumental variables, then correct for potential endogeneity with ninth grade repeating. Compulsory schooling instruments create bias of up to 38 percent when failing to account for endogenous ninth grade repeating. I then examine how grade repeating in any grade affects estimation of wage, hours, and employment differentials. |
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Bibliography Citation
Kennedy, Kendall J. "Hidden Schooling: Repeated Grades and the Returns to Education and Experience." Presented: Chicago IL, Association for Public Policy Analysis and Management (APPAM) Annual Fall Research Conference, November 2017. |