Interpreting Instrumental Variables Estimates of the Returns to Schooling

No 7989, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper synthesizes economic insights from theoretical models of schooling choice based on individual benefits and econometric work interpreting instrumental variables estimates as weighted averages of individual-specific causal effects. Linkages are illustrated using college proximity to instrument for schooling. After characterizing groups differentially affected by the instrument according to family background, I directly compute weights underlying estimation of the overall return. In analyzing the level of schooling at which individuals change their behavior in response to the instrument, I demonstrate that this instrument has its greatest impact on the transition from high school to college. Specification robustness is also examined.

JEL-codes: J3 (search for similar items in EconPapers)
Date: 2000-10
Note: LS CH
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published as Kling, Jeffrey R. "Interpreting Instrumental Variables Estimates Of The Returns To Schooling," Journal of Business and Economic Statistics, 2001, v19(3,Jul), 358-364.

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Journal Article: Interpreting Instrumental Variables Estimates of the Returns to Schooling (2001)
Working Paper: Interpreting Instrumental Variables Estimates of the Returns to Schooling (1999)
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