Endogeneity of schooling in the wage function: evidence from the rural Philippines

This paper evaluates the effect (in terms of private returns) of investment in education on wages in the rural Philippines. Statistical endogeneity of education in the wage function may result from (1) unobserved determinants of education that also influence wages and/or (2) measurement error. Panel...

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Autor principal: Maluccio, John
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1998
Materias:
Acceso en línea:https://hdl.handle.net/10568/161220
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author Maluccio, John
author_browse Maluccio, John
author_facet Maluccio, John
author_sort Maluccio, John
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper evaluates the effect (in terms of private returns) of investment in education on wages in the rural Philippines. Statistical endogeneity of education in the wage function may result from (1) unobserved determinants of education that also influence wages and/or (2) measurement error. Panel data are used that provide relevant instruments, particularly distance to schools and measures of household resources, at the time of schooling, to endogenize investments in education while estimating wage functions. The estimated return to education increases more than 60 percent when education is endogenized. This increase is robust to the inclusion of a measure of health, models of selection into the sample, and measurement error. The paper suggests how heterogeneous returns to education might account for the magnitude of the downward bias in returns to schooling.
format Artículo preliminar
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institution CGIAR Consortium
language Inglés
publishDate 1998
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spelling CGSpace1612202025-11-06T05:18:19Z Endogeneity of schooling in the wage function: evidence from the rural Philippines Maluccio, John income education economic aspects rural population This paper evaluates the effect (in terms of private returns) of investment in education on wages in the rural Philippines. Statistical endogeneity of education in the wage function may result from (1) unobserved determinants of education that also influence wages and/or (2) measurement error. Panel data are used that provide relevant instruments, particularly distance to schools and measures of household resources, at the time of schooling, to endogenize investments in education while estimating wage functions. The estimated return to education increases more than 60 percent when education is endogenized. This increase is robust to the inclusion of a measure of health, models of selection into the sample, and measurement error. The paper suggests how heterogeneous returns to education might account for the magnitude of the downward bias in returns to schooling. 1998 2024-11-21T09:54:14Z 2024-11-21T09:54:14Z Working Paper https://hdl.handle.net/10568/161220 en Open Access application/pdf International Food Policy Research Institute Maluccio, John. 1998. Endogeneity of schooling in the wage function: evidence from the rural Philippines. FCND Discussion Paper 54. https://hdl.handle.net/10568/161220
spellingShingle income
education
economic aspects
rural population
Maluccio, John
Endogeneity of schooling in the wage function: evidence from the rural Philippines
title Endogeneity of schooling in the wage function: evidence from the rural Philippines
title_full Endogeneity of schooling in the wage function: evidence from the rural Philippines
title_fullStr Endogeneity of schooling in the wage function: evidence from the rural Philippines
title_full_unstemmed Endogeneity of schooling in the wage function: evidence from the rural Philippines
title_short Endogeneity of schooling in the wage function: evidence from the rural Philippines
title_sort endogeneity of schooling in the wage function evidence from the rural philippines
topic income
education
economic aspects
rural population
url https://hdl.handle.net/10568/161220
work_keys_str_mv AT malucciojohn endogeneityofschoolinginthewagefunctionevidencefromtheruralphilippines