Discussion Papers no. 666
Life-cycle bias and the returns to schooling in current and lifetime earnings
This paper uses a unique data set with nearly career-long earnings histories to provide evidence on the returns to schooling in current and lifetime earnings. We use these results to assess the importance of life-cycle bias in earnings regressions using current earnings as a proxy for lifetime earnings. To account for the endogeneity of schooling, we apply three commonly used identification strategies. Our estimates demonstrate a strong life-cycle bias, often exceeding the bias from assuming that schooling is exogenous. We further explore the problems caused by life-cycle bias in research on the economic returns to schooling, and discuss possible remedies.
Om publikasjonen
- Tittel
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Life-cycle bias and the returns to schooling in current and lifetime earnings
- Ansvarlige
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Manudeep Bhuller, Magne Mogstad, Kjell G. Salvanes
- Serie og -nummer
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Discussion Papers no. 666
- Utgiver
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Statistics Norway
- Emne
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Discussion Papers
- ISSN
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1892-753X
- Antall sider
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42
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Kontakt
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