6533b7d1fe1ef96bd125c039

RESEARCH PRODUCT

Returns to Schooling in Spain: How Reliable are Instrumental Variable Estimates?

Empar PonsMaria Teresa Gonzalo

subject

Male workersObservational errorSeason of birthGeography Planning and DevelopmentInstrumental variableEconometricsEndogeneityReliability (statistics)DemographyMathematics

description

This paper studies the ordinary least–squares (OLS) and instrumental variable (IV) estimates of the returns to schooling for male workers in Spain. OLS estimates are often biased due to the endogeneity of schooling, measurement errors or omitted variables. Proper IV estimates correct this bias. The reliability of family background, natural experiments (based on changes in the education system and season of birth) and the availability of a college in the province is checked using Spanish data. The results suggest that background and college availability are valid instruments and that the IV estimates of the returns to schooling are higher than OLS estimates. These results are in line with the majority of previous results in the literature.

yearjournalcountryeditionlanguage
2002-12-01Labour
https://doi.org/10.1111/1467-9914.00215