A parametric control function approach to estimating the returns to schooling in the absence of exclusion restrictions. An application to the NLSY.

Autor/inn/en	Farré, Lídia; Klein, Roger; Vella, Francis
Titel	A parametric control function approach to estimating the returns to schooling in the absence of exclusion restrictions. An application to the NLSY.
Quelle	Bonn: IZA (2010), 42 S. PDF als Volltext kostenfreie Datei Link als defekt meldenVerfügbarkeit
Reihe	Discussion paper series / Forschungsinstitut zur Zukunft der Arbeit. 4935
Sprache	englisch
Dokumenttyp	online; Monographie; Graue Literatur
Schlagwörter	Schätzung; Statistik; Streuung; Theorie; USA; Schätztheorie; Schätzung; Bildungsertrag; Bildungsertrag; Schätztheorie; Streuung; Statistik; Arbeitspapier; Theorie; USA
Abstract	An innovation which bypasses the need for instruments when estimating endogenous treatment effects is identification via conditional second moments. The most general of these approaches is Klein and Vella (2010) which models the conditional variances semiparametrically. While this is attractive, as identification is not reliant on parametric assumptions for variances, the non-parametric aspect of the estimation may discourage practitioners from its use. This paper outlines how the estimator can be implemented parametrically. The use of parametric assumptions is accompanied by a large reduction in computational and programming demands. We illustrate the approach by estimating the return to education using a sample drawn from the National Longitudinal Survey of Youth 1979. Accounting for endogeneity increases the estimate of the return to education from 6.8% to 11.2%.
Erfasst von	ZBW - Leibniz-Informationszentrum Wirtschaft, Kiel
Update	2010/4