Estimating returns to education using different natural experiment techniques

Economics of Education Review

Volumn 27, Issue 2, 2008, Pages 149-160

  Leigh, Andrew ^a   Ryan, Chris ^a  

^a AUSTRALIAN NATIONAL UNIVERSITY   (Australia)

Author keywords

Australia; Compulsory schooling; Instrumental variables; Returns to education; Twins

Indexed keywords

COMPARATIVE STUDY; EDUCATION; ESTIMATION METHOD; EXPERIMENTAL STUDY; INCOME; LEAST SQUARES METHOD; RETURNS TO EDUCATION;

AUSTRALASIA; AUSTRALIA;

EID: 44249109734     PISSN: 02727757     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.econedurev.2006.09.004     Document Type: Article

References (40)

1. Aakvik A., Salvanes K., and Vaage K. Measuring heterogeneity in the returns to education in Norway using educational reforms. IZA Discussion Paper 815 (2003), IZA (Institute for the Study of Labor), Bonn, Germany
2. Acemoglu, D., & Angrist, J. D. (2000). How large are human capital externalities? Evidence from compulsory schooling laws. In Proceedings of NBER Macroeconomics Annual 2000. Cambridge, MA: NBER.
3. Angrist J.D., and Krueger A.B. Does compulsory school attendance affect schooling and earnings?. Quarterly Journal of Economics 106 (1991) 979-1014
4. Angrist J.D., and Krueger A.B. Empirical strategies in labor economics. In: Ashenfelter O., and Card D. (Eds). Handbook of labour economics vol. 3A (1999), Elsevier Science, Holland (Chapter 23)
5. Ashenfelter O., and Krueger A. Estimates of the economic return to schooling from a new sample of twins. American Economic Review 84 5 (1994) 1157-1173
6. Ashenfelter O., and Rouse C. Income, schooling, and ability: evidence from a new sample of identical twins. Quarterly Journal of Economics 113 (1998) 253-284
7. Becker, S., & Siebern-Thomas, F. (2001). Returns to education in Germany: A variable treatment intensity approach. EUI Working Paper ECO 2001/09.
8. Behrman J.R., Rosenzweig M.R., and Taubman P. Endowments and the allocation of schooling in the family and in the marriage market: The twins experiment. Journal of Political Economy 102 (1994) 1131-1174
9. Black S.E., Devereaux P.J., and Salvanes K. Fast times at Ridgemont High? The effect of compulsory schooling laws on teenage births. NBER Working Paper 10911 (2004), NBER, Cambridge, MA
10. Blackburn M.L., and Neumark D. Are OLS estimates of the return to schooling biased downward? Another look. Review of Economics and Statistics 77 2 (1995) 217-230
11. Bonjour D., Cherkas L.F., Hashel J.E., Hawkes D.D., and Spector T.D. Returns to education: Evidence from UK twins. American Economic Review 93 5 (2003) 1799-1812
12. Bound J., Jaeger D.A., and Baker R.M. Problems with instrumental variables estimation when the correlation between the instruments and the endogenous explanatory variable is weak. Journal of the American Statistical Association 90 430 (1995) 443-450
13. Bound J., and Solon G. Double trouble: On the value of twins-based estimation of the return to schooling. Economics of Education Review 18 2 (1999) 169-182
14. Card D. Using geographic variation in college proximity to estimate the return to schooling. In: Christodes L.N., Grant E.K., and Swidinsky R. (Eds). Aspects of labour market behaviour: Essays in honour of John Vanderkamp (1995), University of Toronto Press, Toronto, Buffalo and London 201-222
15. Cruz L.M., and Moreira M.J. On the validity of econometric techniques with weak instruments: Inference on returns to education using compulsory school attendance laws. Journal of Human Resources 40 2 (2005) 393-410
16. Del Bono E., and Galindo-Rueda F. Do a few months of compulsory schooling matter? The education and labour market impact of school leaving rules. IZA Discussion Paper 1233 (2004), IZA (Institute for the Study of Labor), Bonn, Germany
17. Duflo E. Schooling and labor market consequences of school construction in Indonesia: Evidence from an unusual policy experiment. American Economic Review 91 (2002) 795-813
18. Fertig M., and Kluve J. The effect of age at school entry on educational attainment in Germany. IZA Discussion Paper 1507 (2005), IZA (Institute for the Study of Labor), Bonn, Germany
19. Goldin C., and Katz L. Mass secondary schooling and the state. NBER Working Paper 10075 (2003), NBER, Cambridge, MA
20. Greene W.H. Econometric Analysis. 5th ed. (2002), MacMillan, New York, NY
21. Harmon C., and Walker I. Estimates of the economic return to schooling for the United Kingdom. American Economic Review 85 (1995) 1278-1286
22. Hogan V., and Rigobon R. Using heteroskedasticity to estimate the returns to schooling. NBER working paper no. 9145 (2002), NBER, Cambridge, MA
23. Ichino A., and Winter-Ebmer R. The long run educational costs of World War II: An application of local average treatment effect estimation. Journal of Labor Economics 22 (2004) 57-86
24. Isacsson G. Estimates of the return to schooling in Sweden from a large sample of twins. Labour Economics 6 (1999) 471-489
25. Leigh, A., & Ryan, C. (2005). Estimating returns to education: Three natural experiment techniques compared. Australian National University Centre for Economic Policy Research Discussion Paper 493. Canberra, Australia: ANU.
26. Meghir, C., & Palme, M. (2003). Ability, parental background and education policy: Empirical evidence from a social experiment. Institute for Fiscal Studies Working Paper 03/05. London: IFS.
27. Miller P.W., Mulvey C., and Martin N. What do twins studies reveal about the economic returns to education? A comparison of Australian and US findings. American Economic Review 85 3 (1995) 586-599
28. Miller P.W., Mulvey C., and Martin N. The return to schooling: Estimates from a sample of young Australian twins. Labour Economics 13 5 (2006) 571-587
29. Milligan, K., Moretti, E., & Oreopoulos, P. (2003). Does education improve citizenship? Evidence from the US and the UK. NBER Working Paper 9584. Cambridge, MA: NBER.
30. Neumark D. Biases in twin estimates of the return to schooling. Economics of Education Review 18 2 (1999) 143-148
31. Oreopolous, P. (2003). Do dropouts drop out too soon? International evidence from changes in school-leaving laws. NBER Working Paper 10155. Cambridge, MA: NBER.
32. Pischke, J., & von Wachter, T. (2004). The effect of compulsory schooling in Germany, mimeo. London School of Economics.
33. Plug E. Season of birth, schooling and earnings. Journal of Economic Psychology 22 (2001) 641-660
34. Preston A. Where are we now with human capital theory?. Economic Record 73 (1997) 51-78
35. Rummery S., Vella F., and Verbeek M. Estimating the returns to education for Australian youth via rank-order instrumental variables. Labour Economics 6 (1999) 491-507
36. Staiger D., and Stock J.H. Instrumental variables regressions with weak instruments. Econometrica 65 3 (1997) 557-586
37. Vella, F., & Verbeek, M. (1997). Using rank order as an instrumental variable: an application to the return to schooling. CES Discussion Paper 97.10, K.U. Leuven.
38. In: Watson N. (Ed). HILDA user manual-Release 3.0 (2005), Melbourne Institute of Applied Economic and Social Research, University of Melbourne, Melbourne
39. Webbink, D., & van Wassenberg, J. (2004). Born on the first of October: Estimating the returns to education using a school entry rule. mimeo, University of Amsterdam.
40. Wooldridge J.M. Econometric analysis of cross section and panel data (2002), MIT Press, Cambridge, MA