Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94713
Authors: 
Björklund, Anders
Year of Publication: 
1983
Series/Report no.: 
IUI Working Paper 105
Abstract: 
In this paper we consider the basic self-selection model for the effects of education, training, unions, and other activities on wages. We show that past models have ignored 'heterogeneity of rewards' to the activity--i.e., differences across individuals in the rate of return to the activity--as a source of selection bias. We model such heterogeneity, show how its presence can be tested, and draw out its implications for the wage and welfare gains to the activity. An empirical application provides strong support for such heterogeneity.
Subjects: 
Education
Unions
Wage
JEL: 
E24
I20
Document Type: 
Working Paper

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