Article
Accounting for Heterogeneous Returns in Sequential Schooling Decisions
Journal of Econometrics
(2010)
Abstract
This paper presents a method for estimating returns to multiple schooling levels taking into account that returns may be heterogeneous among agents and that educational decisions are made sequentially. A sequential decision model explicitly considers that the level of education is the result of previous schooling choices and so, the variation of supply-side instruments over time will emerge as a source of identification of the desired parameters. A test for heterogeneity in returns from sequential schooling decisions is developed and expressions for Marginal Treatment Effects are obtained in this context. Returns are estimated and tested from cross-sectional data from a Spanish household survey that contains rich family background information and useful instruments. This methodlology is used to analyze possible effects of the 1970 reform of the Spanish education system.
Keywords
- Schooling,
- Selection models,
- Heterogeneity,
- Sequential decisions,
- Policy evaluation
Disciplines
Publication Date
2010
Citation Information
Gema Zamarro. "Accounting for Heterogeneous Returns in Sequential Schooling Decisions" Journal of Econometrics Vol. 156 (2010) Available at: http://works.bepress.com/gema_zamarro/2/