Independence, Monotonicity, and Latent Index Models: An Equivalence Result

Vytlacil, Edward

doi:10.1111/1468-0262.00277

Cited by 423 publications

(358 citation statements)

References 18 publications

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“…33 Measuring the unemployment level during the year on a scale from 0 to 1000, high school graduates with high level Math have an average unemployment level of 15.6 below that of other high school graduates, i.e. they are on average unemployed 1.56% less of the year, cf.…”

Section: Robustness Testsmentioning

confidence: 99%

Is there a Causal Effect of High School Math on Labor Market Outcomes?

Joensen

Nielsen

2009

Journal of Human Resources

127

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Is there a Causal Effect of High School Math on Labor Market Outcomes?Juanna Schrøter Joensen Helena Skyt Nielsen The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Outsourcing of jobs to low-wage countries has increased the focus on the accumulation of skills -such as Math skills -in high-wage countries. In this paper, we exploit a high school pilot scheme to identify the causal effect of advanced high school Math on labor market outcomes. The pilot scheme reduced the costs of choosing advanced Math because it allowed for at more flexible combination of Math with other courses. We find clear evidence of a causal relationship between Math and earnings for the students who are induced to choose Math after being exposed to the pilot scheme. The effect partly stems from the fact that these students end up with higher education.JEL Classification: I20, J24

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Section: Robustness Testsmentioning

confidence: 99%

Is there a Causal Effect of High School Math on Labor Market Outcomes?

Joensen

Nielsen

2009

Journal of Human Resources

127

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“…They refer to this as a monotonicity assumption. Vytlacil (2002) points out that this is implied by the latent index model when the index ϕ(Z i ) is separable from ν i as we assumed in equation (5.6). As is implied by equation (5.7), increasing the index ϕ(Z i ) will cause some people to switch from hunting to fishing, but not the reverse.…”

Section: Imbens and Angristmentioning

confidence: 97%

Identification of Models of the Labor Market

French¹,

Taber²

2011

Handbook of Labor Economics

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This chapter discusses identification of common selection models of the labor market.We start with the classic Roy model and show how it can be identified with exclusion restrictions. We then extend the argument to the generalized Roy model, treatment effect models, duration models, search models, and dynamic discrete choice models.In all cases, key ingredients for identification are exclusion restrictions and support conditions.

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“…This can be done using fairly standard parametric methods for estimating selection models, or using a more recent non-parametric approaches to the same problem. Vytlacil (2002) shows that the monotonicity and independence assumptions supporting the interpretation of standard IV estimates of the effect of a particular program (such as attendance of upper secondary school) as local average treatment effects, are the same as the assumptions underlying a standard non-parametric selection model, and thus the two are equivalent. Vytlacil (2001a, 2005) explain how to estimate such a model using the method of Local Instrumental Variables, which we apply in this paper, together with more parametric estimates of the same model.…”

mentioning

confidence: 90%

Average and marginal returns to upper secondary schooling in Indonesia

Carneiro¹,

Lokshin²,

Ridao-Cano³

et al. 2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 6162 November 2011 ABSTRACT Average and Marginal Returns to Upper Secondary Schooling in Indonesia *This paper estimates average and marginal returns to schooling in Indonesia using a nonparametric selection model. Identification of the model is given by exogenous geographic variation in access to upper secondary schools. We find that the return to upper secondary schooling varies widely across individuals: it can be as high as 50 percent per year of schooling for those very likely to enroll in upper secondary schooling, or as low as -10 percent for those very unlikely to do so. Average returns for the student at the margin are well below those for the average student attending upper secondary schooling. JEL Classification:J31

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Independence, Monotonicity, and Latent Index Models: An Equivalence Result

Cited by 423 publications

References 18 publications

Is there a Causal Effect of High School Math on Labor Market Outcomes?

Is there a Causal Effect of High School Math on Labor Market Outcomes?

Identification of Models of the Labor Market

Average and marginal returns to upper secondary schooling in Indonesia

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