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Author: van Ophem, Hans
Resulting in 3 citations.
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Mazza, Jacopo van Ophem, Hans |
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Separating Risk from Heterogeneity in Education: A Semiparametric Approach Journal of the Royal Statistical Society: Series A (Statistics in Society) 181,1 (January 2018): 249-275. Also: http://onlinelibrary.wiley.com/doi/10.1111/rssa.12253/abstract Cohort(s): NLSY79 Publisher: Wiley Online Keyword(s): Earnings; Educational Attainment; Educational Returns; Heterogeneity; Wage Equations Permission to reprint the abstract has not been received from the publisher. Returns to education are variable both within and between educational group. If uncertain pay-offs are a concern to individuals when selecting an education, wage variance is relevant. The variation is a combination of unobserved heterogeneity and pure uncertainty or risk. The first element is known to the individual, but unknown to the researcher; the second is unknown to both. As a result, the variance of wages observed in the data will overestimate the real magnitude of educational uncertainty and the effect that risk has on educational decisions. We apply a semiparametric estimation technique to tackle the selectivity issues. This method does not rely on distributional assumptions of the errors in the schooling choice and wage equations. Our results suggest that risk is decreasing in schooling. Private information accounts for a share varying between 0% and 13% of total wage variance observed depending on the educational level. Finally, we conclude that the estimation results are very sensitive to the functional relation that is imposed on the error structure. |
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Bibliography Citation
Mazza, Jacopo and Hans van Ophem. "Separating Risk from Heterogeneity in Education: A Semiparametric Approach." Journal of the Royal Statistical Society: Series A (Statistics in Society) 181,1 (January 2018): 249-275.
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Mazza, Jacopo van Ophem, Hans Hartog, Joop |
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Unobserved Heterogeneity and Risk in Wage Variance: Does More Schooling Reduce Earnings Risk? Labour Economics 24 (October 2013): 323-338. Also: http://www.sciencedirect.com/science/article/pii/S0927537113001061 Cohort(s): NLSY79 Publisher: Elsevier Keyword(s): British Household Panel Survey (BHPS); Earnings; Educational Attainment; Educational Returns; German Socio-Economic Panel (GSOEP); Heterogeneity; Wage Theory We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries. |
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Bibliography Citation
Mazza, Jacopo, Hans van Ophem and Joop Hartog. "Unobserved Heterogeneity and Risk in Wage Variance: Does More Schooling Reduce Earnings Risk?" Labour Economics 24 (October 2013): 323-338.
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| 3. |
van Ophem, Hans Mazza, Jacopo |
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Educational Choice, Initial Wage and Wage Growth Empirical Economics published online (21 March 2024). Also: https://link.springer.com/article/10.1007/s00181-024-02580-5 Cohort(s): NLSY79 Publisher: Springer Keyword(s): College Degree; College Education; College Graduates; College Major/Field of Study/Courses; Education, Higher; Education, Postsecondary; Life Cycle; Wage Growth; Wages; Wages, Starting Permission to reprint the abstract has not been received from the publisher. We study the effects of expected initial wages, expected wage growth, and observed and unobserved heterogeneity in the choice of college major in a sample of American college graduates. We propose a three-stage empirical model that relates future earnings to individual choices. In the first stage, starting from revealed choices, observed wages, and life-cycle wage profiles, we estimate the expectation on initial wages and wage growth from the individual point of view, where the panel structure of the data allows us to produce estimates corrected for self-selection bias. We find substantial differences in expected real wages and expected real wage growth between majors and that both characteristics of life cycle earnings influence major choice. Our parametric models show a strong correlation between salary trends and major choice, whereas semiparametric models yield less reliable results. We interpret our results as being consistent with agents being rational and as a validation for our estimation strategy based on counterfactual imputation. |
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Bibliography Citation
van Ophem, Hans and Jacopo Mazza. "Educational Choice, Initial Wage and Wage Growth." Empirical Economics published online (21 March 2024).
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