Estimating the return to education considerate the legislation of education in Brazil as an instrumental variable

Wladimir Teixeira () and Naercio Menezes-Filho

Brazilian Journal of Political Economy, 2012, vol. 32, issue 3, 479-496

Abstract: This paper aims to estimate the impact of education on wages in Brazil. GDP, Population, and the number of schools in the state and year when the individual was born as instruments for his education level were used. In this context, the paper consider other instrument, the Brazilian education Law 5692 of 1971. The results show that the Law 5692 of 1971 and the number of schools in the individual´s year of birth bears a positive relationship with his education, and the returns to education decrease quite substantially when the method of instrumental variables is used. JEL Classification: J30; J31; I21.

Keywords: Mincer; instrumental variables; education (search for similar items in EconPapers)
Date: 2012
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