Ability Bias, Skewness and the College Wage Premium

Robin Naylor () and Jeremy Smith
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Jeremy Smith: Department of Economics, University of Warwick

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: Changes in educational participation rates across cohorts are likely to imply changes in the ability-education relationship and thereby to impact on estimated returns to education. We show that skewness in the underlying ability distribution is a key determinant of the impact of graduate expansion on the college wage premium. Calibrating the model against the increased proportion of university students in Britain, we find that changes in the average ability gap between university students and others are likely to have mitigated demand-side forces.

Keywords: Ability Bias; College Wage Premium; Graduate Returns; Cohort Effects (search for similar items in EconPapers)
JEL-codes: D82 I21 J24 J31 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
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Citations: View citations in EconPapers (1)

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Working Paper: Ability Bias, Skewness and the College Wage Premium (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:907

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