Estimating the return to endogenous schooling decisions for Australian workers via conditional second moments

Arbeitspapier

This paper employs conditional second moments to identify the impact of education in wage regressions where education is treated as endogenous. This approach avoids the use of instrumental variables in a setting where instruments are frequently not available. We employ this methodology to estimate the returns to schooling for a sample of Australian workers. We find that accounting for the endogeneity of education in this manner increases the estimated return to education from 6 percent to 10 percent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 2407

Classification and Topics

• Classification: Wirtschaft
• Subject: Bildungsertrag ; Regression ; Instrumentalvariablen-Schätzmethode ; Australien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Klein, Roger ; Vella, Francis
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/33933
• URN: urn:nbn:de:101:1-2009031324
• Last update: 10.03.2025, 11:44 AM CET