Omitted-Ability Bias and the Increase in the Return to Schooling / McKinley L. Blackburn, David Neumark.

Format:

Book

Author/Creator:

Blackburn, McKinley L.

Contributor:

National Bureau of Economic Research.

Neumark, David.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3693.

NBER working paper series no. w3693

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1991.

Summary:

Over the 1980s there were sharp increases in the return to schooling estimated with conventional wage regressions. We use both a signaling model and a human capital model to explore how the relationship between ability and schooling could have changed over this period in ways Chat would have increased the schooling coefficient in these regressions. Our empirical results reject the hypothesis that an increase in the upward bias of the schooling coefficient, due to a change in the relationship between ability and schooling, underlies the observed increase in the return to education over the 1980s. We also find that the increase in the return to education has occurred largely for workers with relatively high levels of academic ability.

Notes:

Print version record

May 1991.