Not logged in.

Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Heterogeneous returns to education over the wage distribution: Who profits the most?
Organization Unit
  • Uschi Backes-Gellner
  • Simone Balestra
Item Subtype Original Work
Refereed No
Status Published in final form
  • English
Journal Title Labour Economics
Publisher Elsevier
Geographical Reach international
ISSN 0927-5371
Volume 44
Page Range 89 - 105
Date 2017
Abstract Text This study presents evidence of heterogeneous returns to education over the wage distribution. The authors use instrumental variable quantile regression and data from the Swiss Labor Force Survey to identify the causal link between education and wages at different quantiles of the conditional distribution of wages. The results provide evidence that there is no unique causal effect of schooling and that for each individual the effect may deviate from those extensively documented by ordinary least squares or two-stage least squares. In particular, while ordinary quantile regression estimates increasing returns in the quantile index, once the endogeneity of schooling is taken into account the authors instead observe higher returns at lower quantiles of the wage distribution. Interpreting the quantile index as a measure of unobserved ability, the results suggest that higher-ability individuals have higher wages, but the slope of their wage-education profile is flatter than that for lower-ability individuals.
Related URLs
Digital Object Identifier 10.1016/j.labeco.2017.01.001
Other Identification Number merlin-id:15409
Export BibTeX