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Title: Interpreting Degree Effects in the Returns to Education
Resulting in 1 citation.
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Flores-Lagunes, Alfonso Light, Audrey L. |
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Interpreting Degree Effects in the Returns to Education Discussion Paper No. 4169, Institute for the Study of Labor (IZA) (May 2009). Also: Working Paper 20 (December 2009), China Center for Human Capital and Labor Market Research, Central University of Finance and Economics. Cohort(s): NLSY79 Publisher: Institute for the Study of Labor (IZA) Keyword(s): College Dropouts; College Graduates; Educational Returns; GED/General Educational Diploma/General Equivalency Degree/General Educational Development; High School Diploma; Modeling; Schooling, Post-secondary; Wage Equations Permission to reprint the abstract has not been received from the publisher. Researchers often identify degree effects by including degree attainment (D) and years of schooling (S) in a wage model, yet the source of independent variation in these measures is not well understood. We argue that S is negatively correlated with ability among degree holders because the most able graduate the fastest, while a positive correlation exists among dropouts because the most able benefit from increased schooling. Using data from the NLSY79, we find support for this explanation, and we reject the notion that the independent variation in S and D reflects reporting error. [ABSTRACT FROM AUTHOR] |
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Bibliography Citation
Flores-Lagunes, Alfonso and Audrey L. Light. "Interpreting Degree Effects in the Returns to Education." Discussion Paper No. 4169, Institute for the Study of Labor (IZA) (May 2009). |