Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142396
Authors: 
Heckman, James J.
Humphries, John Eric
Veramendi, Gregory
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9957
Abstract: 
This paper estimates returns to education using a dynamic model of educational choice that synthesizes approaches in the structural dynamic discrete choice literature with approaches used in the reduced form treatment effect literature. It is an empirically robust middle ground between the two approaches which estimates economically interpretable and policy-relevant dynamic treatment effects that account for heterogeneity in cognitive and non-cognitive skills and the continuation values of educational choices. Graduating college is not a wise choice for all. Ability bias is a major component of observed educational differentials. For some, there are substantial causal effects of education at all stages of schooling.
Subjects: 
education
earnings
health
rates of return
causal effects of education
cognitive skills
non-cognitive skills
JEL: 
C32
C38
I12
I14
I21
Document Type: 
Working Paper

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