Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96795
Authors: 
Andini, Corrado
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Paper 8143
Abstract: 
A well-established empirical literature suggests that individual wages are persistent. Several theoretical arguments support this empirical finding. Yet, the standard approach to the estimation of schooling returns does not account for this fact. This paper investigates the consequences of disregarding earnings persistence. In particular, it shows that the most commonly used static-model estimators of schooling coefficients are subject to an omitted-variable bias which can be named persistence bias.
Subjects: 
schooling
wages
dynamic panel-data models
JEL: 
C23
I21
J31
Document Type: 
Working Paper

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