We extend the standard human capital earnings function to include dispersion in the return to schooling by treating the return as a random coefficient (RC). If the rapid expansion in participation in higher education has ...
Recent developments in the schooling returns literature have focused on exploiting alternative instruments. A number of instruments are available in an Irish dataset, including parental background variables (social class ...
The existing literature now features many examples where log wages are linear in years of schooling and which effectively attempt to correct for least squares bias using instruments based essentially on a single variable. ...
We explore the possibility that different instruments may affect different margins of the schooling distribution, and consistent with recent evidence we find a large, significant downward bias in the least squares estimate ...