Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting

Mohit Agrawal, Joseph Altonji and Richard Mansfield

No 25167, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We extend the control function approach of Altonji and Mansfield (2018) to allow for multiple group levels and complementarities. Our analysis provides a foundation for causal interpretation of multilevel mixed effects models in the presence of sorting. In our empirical application, we obtain lower bound estimates of the importance of school and commuting zone inputs for education and wages. A school/location combination at the 90th versus 10th percentile of the school/location quality distribution increases the high school graduation probability and college enrollment probability by at least .06 and .17, respectively. Treatment effects are heterogeneous across subgroups, primarily due to nonlinearity in the educational attainment model.

JEL-codes: C1 C31 I20 I24 I26 R23 (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-ecm and nep-ure
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Published as Mohit Agrawal & Joseph G. Altonji & Richard K. Mansfield, 2019. "Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting," Journal of Labor Economics, vol 37(S1), pages S11-S83.
Published as Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting , Mohit Agrawal, Joseph G. Altonji, Richard K. Mansfield. in Youth Labor Markets , Card. 2019

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Chapter: Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting (2016)
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