Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33933
Authors: 
Klein, Roger
Vella, Francis
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2407
Abstract: 
This paper employs conditional second moments to identify the impact of education in wage regressions where education is treated as endogenous. This approach avoids the use of instrumental variables in a setting where instruments are frequently not available. We employ this methodology to estimate the returns to schooling for a sample of Australian workers. We find that accounting for the endogeneity of education in this manner increases the estimated return to education from 6 percent to 10 percent.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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