Estimating the Returns to Schooling¶
Griliches. (1977). Estimating the Returns to Schooling: Some Econometric Problems.
Cited by¶
1 citation across 1 artifact.
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Domain-specific¶
- Underfitting
- Innate ability plausibly raises both schooling and wages, so a model that omits ability is too poor a specification to separate the two effects; the schooling coefficient absorbs part of ability's influence and is biased
This sourceThe classic econometric treatment of ability as an omitted variable in schooling-earnings regressions, which also finds the conventionally assumed upward ability bias small once measurement error is accounted for.
Supported in partVerified against the source
- Innate ability plausibly raises both schooling and wages, so a model that omits ability is too poor a specification to separate the two effects; the schooling coefficient absorbs part of ability's influence and is biased
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