Options
Can education compensate for low ability? Evidence from British data (version 3.0)
Author(s)
Date Issued
2004-06
Date Available
2008-05-28T14:08:49Z
Abstract
This paper uses cross section data to investigate whether education and ability are substitutes or complements in the determination of earnings. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for unobserved ability.
Type of Material
Working Paper
Publisher
University College Dublin; Institute for the Study of Social Change (Geary Institute)
Series
ISSC Discussion Paper Series
WP 2004/05
Classification
J31
Subject – LCSH
Education
Ability
Wages--Effect of education on
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
Owning collection
Views
1845
Last Week
1
1
Acquisition Date
Mar 19, 2024
Mar 19, 2024
Downloads
264
Last Week
1
1
Acquisition Date
Mar 19, 2024
Mar 19, 2024