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Title: Estimating Distributions of Potential Outcomes Using Local Instrumental Variables with an Application to Changes in College Enrollment and Wage Inequality
Resulting in 1 citation.
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Carneiro, Pedro M. Lee, Sokbae |
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Estimating Distributions of Potential Outcomes Using Local Instrumental Variables with an Application to Changes in College Enrollment and Wage Inequality Journal of Econometrics 149,2 (April 2009): 191-208. Also: http://www.sciencedirect.com/science/article/pii/S0304407609000281 Cohort(s): NLSY79 Publisher: Elsevier Keyword(s): College Enrollment; Colleges; High School Completion/Graduates; Schooling; Variables, Instrumental; Wage Equations; Wages This paper extends the method of local instrumental variables developed by Heckman and Vytlacil [Heckman, J., Vytlacil E., 2005. Structural equations, treatment, effects and econometric policy evaluation. Econometrica 73(3), 669–738] to the estimation of not only means, but also distributions of potential outcomes. The newly developed method is illustrated by applying it to changes in college enrollment and wage inequality using data from the National Longitudinal Survey of Youth of 1979. Increases in college enrollment cause changes in the distribution of ability among college and high school graduates. This paper estimates a semiparametric selection model of schooling and wages to show that, for fixed skill prices, a 14% increase in college participation (analogous to the increase observed in the 1980s), reduces the college premium by 12% and increases the 90–10 percentile ratio among college graduates by 2%. [Copyright 2009 Elsevier] Copyright of Journal of Econometrics is the property of Elsevier Science Publishers B.V. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts) |
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Bibliography Citation
Carneiro, Pedro M. and Sokbae Lee. "Estimating Distributions of Potential Outcomes Using Local Instrumental Variables with an Application to Changes in College Enrollment and Wage Inequality." Journal of Econometrics 149,2 (April 2009): 191-208.
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