Using heteroscedasticity to estimate the returns to education

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dc.contributor.author Hogan, Vincent (Vincent Peter)
dc.contributor.author Rigobon, Roberto
dc.date.accessioned 2009-03-04T16:25:46Z
dc.date.available 2009-03-04T16:25:46Z
dc.date.copyright UCD School of Economics 2003 en
dc.date.issued 2003-01
dc.identifier.uri http://hdl.handle.net/10197/931
dc.description.abstract 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 attainment. Our prefered estimate, 6.07%, is closer to the OLS estimate but smaller (and more precise) than the estimates typically reported by studies that use IV. Our results indicate that the biases generated by unobserved ability and measurement error tend to cancel each other out as suggested by Griliches (1977). We also present Monte Carlo evidence to show that the finite sample bias our estimator is small. en
dc.format.extent 314620 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP03/01 en
dc.subject Identification en
dc.subject Returns to education en
dc.subject.classification C30 en
dc.subject.classification I20 en
dc.subject.classification J31 en
dc.subject.lcsh Education--Economic aspects en
dc.subject.lcsh Heteroscedasticity en
dc.subject.lcsh Wages--Effect of education on en
dc.title Using heteroscedasticity to estimate the returns to education en
dc.type Working Paper en
dc.internal.authorurl Vincent (Vincent Peter) Hogan (web page) en
dc.internal.authorurl http://www.ucd.ie/research/people/economics/drvincenthogan/home/ en
dc.internal.authorid UCD0011 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://www.ucd.ie/economics/research/papers/2003/WP03.01.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Hogan|Vincent (Vincent Peter)|aut|UCD0011
dc.neeo.contributor Rigobon|Roberto|aut|


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