Estimating Marginal Returns to Education.
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ABSTRACT:
SUBMITTER: Carneiro P
PROVIDER: S-EPMC4126808 | biostudies-literature | 2011 Oct
REPOSITORIES: biostudies-literature
Publications
Estimating Marginal Returns to Education.
Carneiro Pedro P Heckman James J JJ Vytlacil Edward E
The American economic review 20111001 6
This paper estimates marginal returns to college for individuals induced to enroll in college by different marginal policy changes. The recent instrumental variables literature seeks to estimate this parameter, but in general it does so only under strong assumptions that are tested and found wanting. We show how to utilize economic theory and local instrumental variables estimators to estimate the effect of marginal policy changes. Our empirical analysis shows that returns are higher for individ ...[more]
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