Does sample selection bias affect the effect of family background on the returns to schooling? Evidence from Korea

Hongkyun Kim

Applied Economics, 2009, vol. 43, issue 8, 963-972

Abstract: This article examines the effect of family background on the returns to schooling in Korea. In doing so, sample selection bias is controlled, as the probability of being employed is affected by the schooling of family members. The results of this study are different from previous studies, which did not consider sample selection bias. While the effect of family background on the returns to schooling was obvious in previous studies, it is weakened with the control of sample selection bias. This phenomenon is particularly strong for the wife. Moreover, controlling sample selection bias increases the downward bias due to measurement error. Thus it is concluded from these findings that sample selection bias should be controlled to accurately estimate the effect of family background on the returns to schooling.

Date: 2009
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DOI: 10.1080/00036840802600111

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