Estimates of the returns to schooling in Taiwan: evidence from a regression discontinuity design

Junchao Zhang ()

Applied Economics Letters, 2020, vol. 27, issue 7, 533-538

Abstract: Using micro-data from the Manpower Utilization Survey 1995–2015 of Taiwan, this paper exploits exogenous variation in years of schooling caused by the 9-year compulsory education reform to estimate the economic returns to schooling. The results of fuzzy regression discontinuity design indicate that the causal effect of education on wage is approximately 5.6%, smaller than the corresponding ordinary least squares estimates. Our results are robust to various specifications and placebo tests.

Date: 2020
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DOI: 10.1080/13504851.2019.1638493

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