Returns to Education: The Causal Effects of Education on Earnings, Health and Smoking

James J. Heckman (), John Humphries and Gregory Veramendi
Additional contact information
James J. Heckman: University of Chicago

No 9957, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper estimates returns to education using a dynamic model of educational choice that synthesizes approaches in the structural dynamic discrete choice literature with approaches used in the reduced form treatment effect literature. It is an empirically robust middle ground between the two approaches which estimates economically interpretable and policy-relevant dynamic treatment effects that account for heterogeneity in cognitive and non-cognitive skills and the continuation values of educational choices. Graduating college is not a wise choice for all. Ability bias is a major component of observed educational differentials. For some, there are substantial causal effects of education at all stages of schooling.

Keywords: causal effects of education; rates of return; health; earnings; education; cognitive skills; non-cognitive skills (search for similar items in EconPapers)
JEL-codes: C32 C38 I12 I14 I21 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2016-05
New Economics Papers: this item is included in nep-ecm and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Published - published in: Journal of Political Economy, 2018, 126, (S1), S197–S246

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https://docs.iza.org/dp9957.pdf (application/pdf)

Related works:
Journal Article: Returns to Education: The Causal Effects of Education on Earnings, Health, and Smoking (2018)
Working Paper: Returns to Education: The Causal Effects of Education on Earnings, Health and Smoking (2016)
Working Paper: Returns to Education: The Causal Effects of Education on Earnings, Health and Smoking (2016)
Working Paper: Returns to Education: The Causal Effects of Education on Earnings, Health and Smoking (2016)
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