The return to schooling in structural dynamic models: a survey

European Economic Review

Volumn 51, Issue 5, 2007, Pages 1059-1105

  Belzil, Christian ^a,b  

^a GATE Lyon Saint Etienne   (France)

^b CIRANO   (Canada)

Author keywords

Ability bias; Dynamic programming; Dynamic self selection; Human capital; IV estimation; Natural experiments; Returns to schooling; Structural estimation

Indexed keywords

DATA SET; ESTIMATION METHOD; HUMAN CAPITAL; MODEL; RETURNS TO EDUCATION; STOCHASTICITY; SURVEY;

EID: 34249898110     PISSN: 00142921     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.euroecorev.2007.01.008     Document Type: Article

References (65)

1. Becker G. Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (1964), National Bureau of Economic Research, New York
2. Becker, G.S., 1967. Human Capital and the Personal Distribution of Income: An Analytical Approach, Woytinski Lecture No. 1. Institute of Public Administration, University of Michigan.
3. Bellman R. Dynamic Programming (1957), Princeton University Press, Princeton, NJ
4. Belzil, C., 2006. Testing the specification of the Mincer wage equation. IZA working paper. Annales d'Economie et de Statistiques, forthcoming.
5. Belzil, C., 2007. Subjective beliefs and schooling decisions. Working paper.
6. Belzil C., and Hansen J. Unobserved ability and the return to schooling. Econometrica 70 (2002) 575-591
7. Belzil C., and Hansen J. Structural estimates of the intergenerational education correlation. Journal of Applied Econometrics 18 (2003) 679-696
8. Belzil, C., Hansen, J., 2007. A structural analysis of the correlated random coefficient wage regression. Journal of Econometrics, in press.
9. Belzil, C., Leonardi, M., 2006. Can risk aversion explain schooling attainments? IZA Working Paper.
10. Ben Porath Y. The production of human capital and the life-cycle of earnings. Journal of Political Economy 75 (1967) 352-365
11. Cameron S., and Taber C. Estimation of educational borrowing constraints using returns to schooling. Journal of Political Economy 112 1 (2004) 132-182
12. Card, D., 1995. Using Geographic Variation in College Proximity to Estimate the Return to Schooling in Aspects of Labour Market Behaviour: Essays in Honor of John Vanderkamp, University of Toronto Press, Toronto, pp. 201-222.
13. Card D. The causal effect of education on earnings. In: David C., and Orley A. (Eds). Handbook of Labor Economics (1999), North-Holland Publishers, Amsterdam
14. Carneiro P., Hansen K., and Heckman J. Estimating distributions of counterfactuals with an application to the returns to schooling and measurement of the effects of uncertainty on schooling choice. International Economic Review 44 (2003) 361-422
15. Cohen-Goldner, S., Eckstein, Z., 2002. Labor mobility of immigrants: Training, experience, language and opportunities. IZA Working Paper No 519.
16. Cohen-Goldner, S., Eckstein, Z., 2004. Estimating the returns to training and occupational experience: The case of female immigrants. IZA Working Paper No. 1225.
17. Cunha F., Heckman J.J., and Navarro S. Separating uncertainty from heterogeneity in life cycle earnings. Hicks Lecture, Oxford University, April 2004. Oxford Economics Papers 57 (2005) 191-261
18. Eckstein, Z., van den Berg, G., 2003. Empirical labor search: A survey, IZA Working Paper No. 929.
19. Eckstein Z., and Wolpin K. The specification and estimation of dynamic stochastic discrete choice models. Journal of Human Resources 24 (1989) 562-598
20. Eckstein Z., and Wolpin K. Dynamic labour force participation of married women and endogenous wage growth. Review of Economic Studies 56 (1989) 375-390
21. Eckstein Z., and Wolpin K. Duration to first job and return to schooling: Estimates from a search-matching model. Review of Economic Studies 62 (1995) 263-286
22. Eckstein Z., and Wolpin K. Youth employment and academic performance in high school. Econometrica 67 6 (1999)
23. Frankfurt H. On Bullshitt (2005), Princeton University Press, Princeton NJ
24. Hansen L.P., and Sargent T.J. Linear rational expectations models for dynamically interrelated variables. In: Lucas R.E., and Sargent T.J. (Eds). Rational expectation and Economic Practice (1981), University of Minnesota Press, Minneapolis
25. Heckman J. Sample selection as a specification error. Econometrica 47 1 (1979) 153-162
26. Heckman, J., Navarro, S., 2007. Dynamic discrete choice and dynamic treatment effects. Journal of Econometrics, forthcoming.
27. Heckman J., and Sedlacek G. Heterogeneity, aggregation, and market wage functions: An empirical model of self-selection in the labor market. Journal of Political Economy 93 6 (1985) 1077-1125
28. Heckman J., and Singer B. A method for minimizing the impact of distributional assumptions in econometric models for duration data. Econometrica 52 2 (1984) 271-320
29. Heckman J., and Vytlacil E. Structural equations, treatment effects and econometric policy evaluations. Econometrica (2005)
30. Heckman J.J., LaLonde R.J., and Smith J.A. The economics and econometrics of active labor market programs. In: Ashenfelter A., and Card D. (Eds). Handbook of Labor Economics vol. 3 (1999), North-Holland, Amsterdam
31. Heckman, J., Lochner, L., Todd, P., 2005. Earnings functions, rates of return, and treatment effects: The Mincer equation and beyond. NBER Working Paper 11544.
32. Hotz J., and Miller R. Conditional choice probabilities and the estimation of dynamic models. The Review of Economic Studies 60 (1993) 497-531
33. Imbens G., and Angrist J. Identification and estimation of local average treatment effects. Econometrica 62 (1994) 4,467-4,476
34. Keane, M., 2006. Structural vs. atheoretic approaches to econometrics. Journal of Econometrics, forthcoming.
35. Keane M., and Wolpin K. The solution and estimation of discrete choice dynamic programming models by simulation and interpolation: Monte Carlo evidence. Review of Economics and Statistics 76 4 (1994) 648-672
36. Keane M.P., and Wolpin K. The career decisions of young men. Journal of Political Economy 105 3 (1997) 473-522
37. Keane M.P., and Wolpin K.I. Eliminating racial differences in schooling attainment and labor market success. Journal of Labor Economics 18 4 (2000) 614-652
38. Keane M.P., and Wolpin K.I. The effect of parental transfers and borrowing constraints on educational attainment. International Economic Review 42 4 (2001) 1051-1103
39. Lazear E. Personnel economics: Past lessons and future directions. Journal of Labor Economics 17 2 (1997) 199-236
40. Lee D. An estimable dynamic general equilibrium model of school, work, and occupational choice. International Economic Review 46 (2005) 1-34
41. Lee D., and Wolpin K. Intersectoral labor mobility and the growth of the service sector. Econometrica 74 (2006) 1
42. Lemieux T., and Card D. Education, earnings, and the "Canadian G.I. Bill". Canadian Journal of Economics 34 2 (2001) 313-344
43. Lemieux, T., David, C., 2000. Education, earnings and the Canadian GI Bill. Canadian Journal of Economics.
44. Magnac T., and Thesmar D. Identifying dynamic discrete decision processes. Econometrica 70 (2002) 801-816
45. Magnac T., and Thesmar D. Analyse économique des politiques éducatives: L'augmentation de la scolarisation en France de 1982 à 1993. Annales d'Économie et de Statistique 66 (2002) 1-35
46. Manski C. Identification problems in the social sciences (1995), Harvard University Press, Cambridge, MA
47. Massé, P., 1946. Les réserves et la régulation de l'avenir dans la vie économique", Hermann, Paris, 1946; Avenir déterminé, vol. 1, 148pp; Avenir aléatoire, vol. II, 229pp.
48. Matzkin, R., 1994. Restrictions of economic theory in nonparametric methods. In: Engel, R.F., McFadden, D.L. (Eds.), Hand of Econometrics, vol. 4.
49. Mincer J. Investment in human capital and personal income distribution. Journal of Political Economy 66 4 (1958) 281-302
50. Mincer J. Schooling, Experience and Earnings (1974), Columbia University Press, New York
51. Pakes A. Patents as options: some estimates of the value of holding European patent stocks. Econometrica 54 4 (1986) 755-784
52. Rosenzweig, M., Wolpin, K., 2000. Natural natural experiments in economics. Journal of Economic Literature 827-74.
53. Roy A. Some thoughts on the distribution of earnings. Oxford Economic Papers 3 (1951) 135-146
54. Rust J. Optimal replacement of GMC bus engines: An empirical analysis of Harold Zurcher. Econometrica 55 (1987) 999-1033
55. Rust J. Structural estimation of markov decision processes. In: Engle R., and McFadden D. (Eds). Handbook of Econometrics (1994), Elsevier Science, North-Holland Publishers, Amsterdam 3081-4143
56. Sauer, R., 2004. Education financing and lifetime earnings. Review of Economic Studies.
57. Staiger D., and Stock J.H. Instrumental variables regression with weak instruments Econometrica 65 (1997) 557-586
58. Stokey, N., Lucas, R.E., Prescott 1989. Recursive Methods in Economic Dynamics. Harvard University Press. Cambridge, MA.
59. Todd, P., Wolpin, K., 2007. Using social experiment. American Economic Review, forthcoming.
60. Vytlacil E. Independence, monotonicity and latent index models: An equivalence result. Econometrica 70 (2002) 331-341
61. Whittle P. Optimization Over Time: Dynamic Programming and Stochastic Control (1982), Wiley, New York
62. Willis, R., 1986. A survey and reinterpretation of human capital earnings functions. In: Ashenfelter, O., Layard, R. (Eds.), Handbook of Labor Economics. Cambridge Press, Berlin, vol. 1 (Chapter 10).
63. Willis R., and Rosen S. Education and self-selection. Journal of Political Economy 87 (1979) S7-S36
64. Wolpin K. An estimable dynamic stochastic model of fertility and child mortality. Journal of Political Economy 92 (1984) 852-874
65. Wolpin K. The determinants of black-white differences in early employment careers: Search, layoffs, quits, and endogenous wage growth. Journal of Political Economy 105 3 (1992) 473-522