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Title: Evidence on Omitted Variable Bias in Earnings Equations
Resulting in 1 citation.
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Griffin, Peter Ganderton, Philip T. |
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Evidence on Omitted Variable Bias in Earnings Equations Economics of Education Review 15,2 (April 1996): 139-148. Also: http://www.sciencedirect.com/science/article/pii/0272775796000015 Cohort(s): NLSY79 Publisher: Elsevier Keyword(s): Benefits, Fringe; Economics of Discrimination; Economics of Gender; Economics of Minorities; Family Background and Culture; Human Capital; Job Tenure; Labor Economics; Occupational Choice; Occupations; Racial Differences; School Quality; Schooling; Skills; Training, Occupational; Training, On-the-Job; Wage Differentials; Wage Levels In this paper we propose that family background variables are significant in earnings equations because they measure investments in children made by families in the home, over and above formal schooling investments and schooling quality. Together these variables account for a significant proportion of the difference between estimated rates of return to schooling across racial groups. Using data from the National Longitudinal Survey of Youth, we observe a convergence of rates of return across racial groups after accounting for differences in these variables. The estimated equations are used to predict that average minority earnings would be almost identical to white earnings if minorities experienced the same family background and school quality as whites. |
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Bibliography Citation
Griffin, Peter and Philip T. Ganderton. "Evidence on Omitted Variable Bias in Earnings Equations." Economics of Education Review 15,2 (April 1996): 139-148.
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