scholarly journals Estimating the Veteran Effect with Endogenous Schooling When Instruments are Potentially Weak

2009 ◽  
Author(s):  
Saraswata Chaudhuri ◽  
Elaina Rose
Keyword(s):  
Endogenous Schooling

scholarly journals Changes in Relative Ability as a Determinant of the U.S. College Premium

2015 ◽  
Vol 7 (1) ◽  
pp. 84-110
Author(s):  
Darius Martin ◽  
Yongli Zhang
Keyword(s):  
The United States ◽  
College Attendance ◽  
Two Dimensions ◽  
Relative Wage ◽  
Heterogeneous Agent ◽  
Highly Educated ◽  
Relative Ability ◽  
Endogenous Schooling ◽  
College Educated ◽  
College Premium

We develop a macroeconomic framework to estimate the importance of fluctuations in relative ability in accounting for trends in the college premium in the United States since 1965. The theoretical scaffolding is a heterogeneous agent model with two dimensions of ability and endogenous schooling choice, with exogenous skill-biased technological change (SBTC), college tuition, and noneconomic social forces. We solve for conditions under which SBTC reduces the relative ability of college educated workers, and show that these conditions are met in the data. We attribute the drop in the college premium over the 1970s to a 25.5% drop in the mean relative quality of college-educated workers from 1968 to 1977. We find that SBTC explains about two thirds of the increase in college attendance since 1965, and that absent both supply shifts and a supply response to SBTC, the relative wage of highly educated workers would have been 77.1% larger in 2013.

scholarly journals Balanced Growth Despite Uzawa

2017 ◽  
Vol 107 (4) ◽  
pp. 1293-1312 ◽  
Author(s):  
Gene M. Grossman ◽  
Elhanan Helpman ◽  
Ezra Oberfield ◽  
Thomas Sampson
Keyword(s):  
Capital Accumulation ◽  
Technological Progress ◽  
The United States ◽  
Investment Good ◽  
Growth Theorem ◽  
Neoclassical Growth Model ◽  
Balanced Growth ◽  
Balanced Growth Path ◽  
Endogenous Schooling ◽  
Neoclassical Growth

The evidence for the United States points to balanced growth despite falling investment-good prices and a less-than-unitary elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa's theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle. However, balanced growth is possible if education is endogenous and capital is more complementary with schooling than with raw labor. We present a class of aggregate production functions for which a neoclassical growth model with capital-augmenting technological progress and endogenous schooling converges to a balanced growth path. (JEL E22, E24, I26, J24, O33, O41, O47)

scholarly journals Endogenous schooling and the distribution of the gender wage gap

2005 ◽  
Vol 30 (1) ◽  
pp. 1-22 ◽  
Author(s):  
J�rgen Hansen ◽  
Roger Wahlberg
Keyword(s):  
Gender Wage Gap ◽  
Wage Gap ◽  
Endogenous Schooling

Endogenous schooling, school proximity and returns to rural schooling in Northwestern China

2017 ◽  
Vol 9 (2) ◽  
pp. 270-286 ◽  
Author(s):  
Qihui Chen ◽  
Jingqin Xu ◽  
Jiaqi Zhao ◽  
Bo Zhang
Keyword(s):  
Design Methodology ◽  
Rural China ◽  
Economic Returns ◽  
Content Type ◽  
Farm Work ◽  
Self Selection ◽  
Rural Schooling ◽  
Step Procedure ◽  
Endogenous Schooling ◽  
Education In China

Purpose The purpose of this paper is to estimate the returns to rural schooling in China, addressing both endogeneity in rural individuals’ schooling and self-selection into off-farm work. Design/methodology/approach This paper exploits geographical proximity to rural secondary schools to create instrumental variables (IV) for individuals’ years of schooling. It addresses both endogenous schooling and self-selection using the two-step procedure developed in Wooldridge (2002, p. 586). Findings The preferred IV estimate of schooling returns, 7.6 percent, is considerably higher than most previous estimates found in rural China. Originality/value This paper is among the few papers that examine returns to rural schooling in China while simultaneously addressing both endogeneity in individuals’ schooling and self-selection into off-farm work. Its findings suggest that rural education in China is potentially able to generate a respectable level of economic returns if policies are designed to provide greater school accessibility to rural individuals.

Sign in / Sign up

Export Citation Format

Share Document