Estimating the Returns to Education: Models, Methods and Results

(2001) - Richard Blundell, Lorraine Dearden, Barbara Sianesi

Journal: Centre for the Economics of Education
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Tags:: #paper #NCDS #Attainment
Cite Key:: [@blundellEstimatingReturnsEducation2001]

Abstract

This paper reviews appropriate non-experimental methods and microeconometric models for recovering the returns to education using individual data. Three estimators are considered: matching methods, instrumental variable methods and control function methods. The properties of these methods are investigated for models with multiple treatments and heterogeneous returns. Data from the British 1958 NCDS birth cohort is used to estimate returns to schooling and to illustrate the sensitivity of different estimators to model specification and data availability.

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