How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws
Опубликовано на портале: 06-02-2007
NBER Working Paper.
1999.
No. 7444.
Тематический раздел:
Average schooling in US states is highly correlated with state wage levels, even
after controlling for the direct effect of schooling on individual wages. We use
an instrumental variables strategy to determine whether this relationship is driven
by social returns to education. The instrumentals for average schooling are derived
from information on the child labor laws and compulsory attendance laws that affected
men in our Census samples, while quarter of birth is used as an instrument for individual
schooling. This results in precisely estimated private returns to education of about
seven percent, and small social returns, typically less than one percent, that are
not significantly different from zero.
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