Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327147 
Year of Publication: 
2025
Series/Report no.: 
GLO Discussion Paper No. 1674
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We estimate the causal effect of schooling on log earnings using instrumental variables (IV), addressing the endogeneity of schooling by using father's education as an instrument. The IV estimate implies a return of approximately 7.7 percent per additional year of schooling. First-stage and endogeneity tests confirm instrument strength and the need for IV.
Subjects: 
Returns to education
Instrumental Variables
Causal impact
JEL: 
I2
I26
J24
J31
Document Type: 
Working Paper

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