It is clear that education has an important effect on wages paid in the labour market
However it not clear whether this is due to the role that education plays in raising the
productivity of workers (the human capital ...
We extend the standard human capital earnings function to include dispersion in the return to schooling by treating the return as a random coefficient. If the rapid expansion in participation in higher education has been ...
We apply a new estimator to the measurement of the economic returns to education. We control for endogenous education, unobserved ability and measurement error using only the natural heteroscedasticty of wages and education ...