Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193229 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11935
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
A substantial and rapidly growing literature has developed around estimating earnings gains from two-year college degrees using administrative data. These papers almost universally employ a person-level fixed effects strategy to estimate earnings premia net of fixed attributes. We note that the seminal piece on which these papers build, Jacobson, Lalonde and Sullivan (Journal of Econometrics, 2005), provides theoretical and empirical evidence for the importance of additionally differencing out individual time-trends. The subsequent literature has not followed suit. Through replication we ask whether this matters. We show that it does, and further that these person-level time-trends need not be computationally burdensome in large administrative data. We recommend them as a unifying econometric standard for future work.
Subjects: 
fixed effects
community college
wages
JEL: 
C51
C52
C54
C55
I26
J31
Document Type: 
Working Paper

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