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Unformatted text preview: 2008 1 10284 1 2 3 100084 OLS F064.1 A Estimating the private return to schooling: A overview of the econometric methods Abstract The ordinary least-squares estimation could not provide an accurate estimate of the returns to schooling because the education on earnings cant prove causality as well as the reporting error in estimating the years of schooling. This paper overview the key econometric approach to tackle this problem, which includes controlling the ability directly, using Instrumental Variable estimation and taking twin data to eliminate the unobservable ability. The author also evaluates the pro and con of these methods and interpret the results. Key words Private Return to Education, Mincer Model Estimation, Ability Bias, Measurement Error Instrumental Variable Estimation 50 Becker,196460 - Card,1999 ,2004(2000Zhang et.al ,2005)(2001; 2004) Psacharopoulo1994...
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This note was uploaded on 10/10/2011 for the course ECON 3250 taught by Professor Wan during the Spring '11 term at Hong Kong Baptist University, China.
- Spring '11