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

Gregory Veramendi, John Humphries and James Heckman

Working Papers from eSocialSciences

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: education; returns to education; educational choice; structural choice; treatment effect; economy; heterogenity; cognitive skills; non-cognitive skills; educational choices; graduation; college; health; smoking; skills; stages of schooling; educational differentials; ability bias (search for similar items in EconPapers)
Date: 2016-06
Note: Institutional Papers
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Citations: View citations in EconPapers (34)

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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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