Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73222
Authors: 
Fersterer, Josef
Winter-Ebmer, Rudolf
Year of Publication: 
2000
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0002
Abstract: 
Individual time preference determines schooling enrolment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Accordingly, we use smoking at age 16 as an instrument for schooling in order to cope with ability bias in a returns to education regression. Doing this for Austrian cross-sectional data, we find no evidence of ability bias.
Subjects: 
returns to education
instrumental variables
ability bias
discount rates
JEL: 
J31
I22
Document Type: 
Working Paper

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