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Title: Omitted-Ability Bias and the Increase in the Return to Schooling
Resulting in 1 citation.
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Blackburn, McKinley L. Neumark, David B. |
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Omitted-Ability Bias and the Increase in the Return to Schooling Journal of Labor Economics 11,3 (July 1993): 521-544. Also: http://www.jstor.org/stable/2535084 Cohort(s): NLSY79 Publisher: University of Chicago Press Keyword(s): Educational Returns; Schooling; Wages During the 1980s there were sharp increases in the return to schooling estimated with conventional wage regressions. An analysis explores whether the relationship between ability and schooling changed over this period in ways that would have increased the schooling coefficient in these regressions. The empirical results reject the hypothesis that an increase in the bias of the schooling coefficient, due to a change in the relationship between ability and schooling, has contributed to observed increases in the return to schooling. It is also found that the increase in the schooling return has occurred for workers with relatively high levels of academic ability. This implies that existing estimates of the increase in the return to schooling overstate increases in the true incentive for the marginal individual to acquire schooling. Supply-side explanations are plausible in explaining an increase in the return to education for high-ability workers only. (ABI/Inform) |
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Bibliography Citation
Blackburn, McKinley L. and David B. Neumark. "Omitted-Ability Bias and the Increase in the Return to Schooling." Journal of Labor Economics 11,3 (July 1993): 521-544.
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