Estimating returns to education using different natural experiment techniques

  title={Estimating returns to education using different natural experiment techniques},
  author={Andrew Leigh and Chris Ryan},
How much do returns to education differ across different natural experiment methods? To test this, we estimate the rate of return to schooling in Australia using two different instruments for schooling: month of birth and changes in compulsory schooling laws. With annual pre-tax income as our measure of income, we find that the naı̈ve ordinary least squares (OLS) returns to an additional year of schooling is 13%. The month of birth IV approach gives an 8% rate of return to schooling, while… CONTINUE READING


Publications referenced by this paper.
Showing 1-10 of 39 references

What do twins studies reveal about the economic returns to education? A comparison of Australian and US findings

  • P. W. Miller, C. Mulvey, N. Martin
  • American Economic Review,
  • 1995
Highly Influential
7 Excerpts

Estimating returns to education: Three natural experiment techniques compared. Australian National University Centre for Economic Policy Research Discussion Paper 493

  • A. Leigh, C. Ryan
  • 2005
Highly Influential
6 Excerpts

Do dropouts drop out too soon? International evidence from changes in school-leaving laws. NBER Working Paper 10155

  • P. Oreopolous
  • 2003
Highly Influential
13 Excerpts

Do a few months of compulsory schooling matter? The education and labour market impact of school leaving rules IZA Discussion Paper 1233. Bonn, Germany: IZA (Institute for the Study of Labor)

  • E. Del Bono, F. Galindo-Rueda
  • 2004
Highly Influential
4 Excerpts

Estimates of the economic return to schooling for the United Kingdom

  • C. Harmon, I. Walker
  • American Economic Review,
  • 1995
Highly Influential
5 Excerpts

HILDA user manual—Release 3.0. Melbourne: Melbourne Institute of Applied Economic and Social Research, University of Melbourne

  • N. Watson
  • 2005
1 Excerpt

On the validity of econometric techniques with weak instruments: Inference on returns to education using compulsory school attendance laws

  • L. M. Cruz, M. J. Moreira
  • Journal of Human Resources,
  • 2005
1 Excerpt

Similar Papers

Loading similar papers…