Arbeitspapier

Earnings functions and rates of return

The internal rate of return to schooling is a fundamental economic parameter that is often used to assess whether expenditure on education should be increased or decreased. This paper considers alternative approaches to estimating marginal internal rates of return for different schooling levels. We implement a general nonparametric approach to estimate marginal internal rates of return that take into account tuition costs, income taxes and nonlinearities in the earnings-schooling-experience relationship. The returns obtained by the more general method differ substantially from Mincer returns in levels and in their evolution over time. They indicate relatively larger returns to graduating from high school than from graduating from college, although both have been increasing over time.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3310

Klassifikation
Wirtschaft
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Thema
Schooling
marginal internal rate of return
nonparametric estimation
Bildungsinvestition
Bildungsertrag
Einkommen
Schätzung
USA

Ereignis
Geistige Schöpfung
(wer)
Heckman, James Joseph
Lochner, Lance J.
Todd, Petra E.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Heckman, James Joseph
  • Lochner, Lance J.
  • Todd, Petra E.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

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