1993
DOI: 10.1086/298306
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Omitted-Ability Bias and the Increase in the Return to Schooling

Abstract: Over the 1980s, there were sharp increases in the return to schooling estimated with conventional wage regressions. We explore whether the relationship between ability and schooling changed over this period in ways that would have increased the schooling coefficient in these regressions. Our empirical results reject the hypothesis that an increase in the bias of the schooling coefficient, due to a change in the relatIOnship between ability and schoolmg, has contributed to observed increases in the return to sc… Show more

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Cited by 176 publications
(107 citation statements)
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“…An F-test of this restriction cannot reject equality of the coefficients. approach has been used by Blackburn and Neumark (1993) using the NLSY data examining the returns to education. To the extent that test scores capture otherwise unobservable productivity-related characteristics, they can reduce the downward bias on the smoking coefficient.…”
Section: Methodsmentioning
confidence: 99%
“…An F-test of this restriction cannot reject equality of the coefficients. approach has been used by Blackburn and Neumark (1993) using the NLSY data examining the returns to education. To the extent that test scores capture otherwise unobservable productivity-related characteristics, they can reduce the downward bias on the smoking coefficient.…”
Section: Methodsmentioning
confidence: 99%
“… 16 Relevant work on earnings includes Levy and Murnane (1992), Card and Lemieux (1996), Blackburn and Neumark (1993), Grogger and Eide (1995), Murnane, Willett, and Levy (1995), and Heckman (1995). This work presents diverse findings about change in the effects of ability on earnings and the importance of such change for inequality of earnings.…”
mentioning
confidence: 99%
“…There is a myriad of evidence that the economic returns to education increased in the 1980s, particularly the return to graduating from a four-year college or university (Blackburn and Neumark 1993;Blackburn, Bloom, and Freeman 1990). There is also some evidence that blacks lost ground to whites in terms of earnings in the 1980s (Bound and Freeman 1992;Blau and Beller 1992;Smith 1991).…”
mentioning
confidence: 99%