Schooling and Labor Market Impacts of a Natural Policy Experiment
The authors use a nationally representative household survey to estimate returns to schooling in Venezuela from instrumental variables based on a supply-side intervention in the education market. These estimates apply to a subgroup of liquidity-con...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/11/5436084/schooling-labor-market-impacts-natural-policy-experiment http://hdl.handle.net/10986/14217 |
| Summary: | The authors use a nationally
representative household survey to estimate returns to
schooling in Venezuela from instrumental variables based on
a supply-side intervention in the education market. These
estimates apply to a subgroup of liquidity-constrained
individuals, in the spirit of the Local Average Treatment
Effect (LATE) literature. Returns to schooling estimates
which apply to a subgroup of individuals affected by the
policy intervention may be more interesting from a policy
perspective than the return to the "average"
individual. The authors use an instrument based on the 1980
education reform (the Organic Law of Education) which
provided for nine years of compulsory basic education. They
also obtain alternative estimates using father's
education as an instrument, in an attempt to derive high and
low estimates of returns to schooling in Venezuela. The
estimates are consistent with recent findings suggesting
that the effect of education, at least for certain subgroups
affected by a policy intervention, is as large, or larger
than what is suggested by OLS estimates. |
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