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Omitted-Ability Bias and the Increase in the Return to Schooling
Abstract
Over the 1980s, there were sharp increases in the return to schooling estimated with conventional wage regressions. We explore whether the relationship between ability and schooling changed over this period in ways that would have increased the schooling coefficient in these regressions. Our 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. We also find that the increase in the schooling return has occurred for workers with relatively high levels of academic ability.
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Citations
Cited by
EDUCATION AND ENTREPRENEURSHIP SELECTION AND PERFORMANCE: A REVIEW OF THE EMPIRICAL LITERATURE
Van Der Sluis, J., Van Praag, M., & Vijverberg, W. (2008) · Journal of Economic Surveys · doi:10.1111/j.1467-6419.2008.00550.x · Cited by 616
The Failure of Input-based Schooling Policies
Hanushek, E. (2002) · National Bureau of Economic Research · doi:10.3386/w9040 · Cited by 270
The Effect of Schooling on Cognitive Skills
Carlsson, M., Dahl, G. B., Öckert, B., & Rooth, D.-O. (2015) · Review of Economics and Statistics · doi:10.1162/rest_a_00501 · Cited by 260
In-school work experience and the returns to schooling
Light, A. (2001) · Journal of Labor Economics · doi:10.1086/209980 · Cited by 192
Verbal ability and socioeconomic success: A trend analysis
Hauser, R. M., & Huang, M.-H. (1997) · Social Science Research · doi:10.1006/ssre.1997.0604 · Cited by 117
Metadata
- Authors
- Blackburn, M. L., & Neumark, D.
- Venue
- Journal of Labor Economics
- Publisher
- University of Chicago Press
- Published
- 1993-07
- Volume
- 11
- Issue
- 3
- Pages
- 521-544
- ISSN
- 0734-306X (ISSN-L)
- 1537-5307
- OpenAlex
- W2060487463
- Cited by
- 196
- References
- 0
- FWCI
- 11.78
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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