Estimating Marginal Returns to Education
Authors: Carneiro, Pedro; Heckman, James J.; Vytlacil, Edward J.
Source: The American Economic Review, Volume 101, Number 6, October 2011 , pp. 2754-2781(28)
Publisher: American Economic Association
Abstract:This paper estimates marginal returns to college for individuals induced to enroll in college by different marginal policy changes. The recent instrumental variables literature seeks to estimate this parameter, but in general it does so only under strong assumptions that are tested and found wanting. We show how to utilize economic theory and local instrumental variables estimators to estimate the effect of marginal policy changes. Our empirical analysis shows that returns are higher for individuals with values of unobservables that make them more likely to attend college. We contrast our estimates with IV estimates of the return to schooling.
Document Type: Research article
Publication date: 2011-10-01
- The American Economic Review is a general-interest economics journal. The journal is published quarterly and contains articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in the economics profession.
- Editorial Board
- Information for Authors
- Subscribe to this Title
- Membership Information
- Terms & Conditions
- e-Publications for AEA Members
- ingentaconnect is not responsible for the content or availability of external websites