Arbeitspapier
Persistence Bias and Schooling Returns
A well-established empirical literature suggests that individual wages are persistent. Several theoretical arguments support this empirical finding. Yet, the standard approach to the estimation of schooling returns does not account for this fact. This paper investigates the consequences of disregarding earnings persistence. In particular, it shows that the most commonly used static-model estimators of schooling coefficients are subject to an omitted-variable bias which can be named persistence bias.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 8143
- Classification
-
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Analysis of Education
Wage Level and Structure; Wage Differentials
- Subject
-
schooling
wages
dynamic panel-data models
- Event
-
Geistige Schöpfung
- (who)
-
Andini, Corrado
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Andini, Corrado
- Institute for the Study of Labor (IZA)
Time of origin
- 2014
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Persistence bias and the wage-schooling model
On Omitted Variable Bias and Measurement Error in Returns to Schooling Estimates
Life-cycle bias and the returns to schooling in current and lifetime earnings
Life-cycle bias and the returns to schooling in current and lifetime earnings
The Returns to Schooling Unveiled
Profit Persistence and Stock Returns
Human Capital, Schooling and Health Returns
Immigrants' return to schooling in Sweden
Heterogeneity in schooling rates of return
Is Additional Schooling Worthless? Revising Zero Returns to Compulsory Schooling in Germany
Labor-Market Returns to Higher Vocational Schooling