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Author: Lemke, Robert J.
Resulting in 1 citation.
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Lemke, Robert J. Rischall, Isaac C. |
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Skill, Parental Income, and IV Estimation of the Returns to Schooling Applied Economics Letters 10,5 (April 17, 2003): 281-287. Also: http://www.tandfonline.com/doi/abs/10.1080/13504850320000078653 Cohort(s): NLSY79 Publisher: Routledge ==> Taylor & Francis (1998) Keyword(s): Educational Returns; Human Capital; Income; Schooling; Skills; Training, On-the-Job; Wage Equations Recently, attention has moved away from using parental backgronnd variables, such as parental education, in favour of using institutional features of the education system as instruments when estimating the return to schooling, In this paper, these possible instruments are revisited. Using the National Longitudinal Survey of Youth, several specifications of the wage equation are estimated and three types of instruments used - parental education, quarter of birth, and college proximity. It is shown that under some specificalions - in particular, by including parental income and individual skill in the wage equation - parental education appears to be a valid and useful instrument. On the other hand, when using the institutional instruments, the weak correlation between the instruments and years of schooling produces imprecise and likely biased estimates of the return to schooling. [ABSTRACT FROM AUTHOR] |
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Bibliography Citation
Lemke, Robert J. and Isaac C. Rischall. "Skill, Parental Income, and IV Estimation of the Returns to Schooling." Applied Economics Letters 10,5 (April 17, 2003): 281-287.
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