Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35753 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 4169
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Researchers often identify degree effects by including degree attainment (D) and years of schooling (S) in a wage model, yet the source of independent variation in these measures is not well understood. We argue that S is negatively correlated with ability among degree-holders because the most able graduate the fastest, while a positive correlation exists among dropouts because the most able benefit from increased schooling. Using data from the NLSY79, we find support for this explanation, and we reject the notion that the independent variation in S and D reflects reporting error.
Subjects: 
Degree effects
returns to education
JEL: 
I21
J24
J31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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