Education, Income, and Ability

Griliches, Zvi; Mason, William M.

doi:10.1086/259988

Cited by 403 publications

(209 citation statements)

References 12 publications

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“…The four approaches to identification described in the (1968) and Hansen, Weisbrod, and Scanlon (1970) Griliches and Mason (1972) and Chamberlain (1978), are reported for models with and without family background controls.…”

Section: Introductionmentioning

confidence: 99%

Empirical Strategies in Labor Economics

Angrist

Krueger

1999

Handbook of Labor Economics

1,198

922

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Section: Introductionmentioning

confidence: 99%

Empirical Strategies in Labor Economics

Angrist

Krueger

1999

Handbook of Labor Economics

1,198

922

View full text Add to dashboard Cite

“…In general the focus has been on the implications for the returns to schooling of including or omitting a control for ability [Griliches and Mason, 1972]. "Ability" in the economics literature is virtually synonymous with cognitive ability and relies in the empirical work on intelligence measures such as can be constructed from the Armed Forces Qualification Test (AFQT) in the USA 1 .…”

Section: Introductionmentioning

confidence: 99%

Can education compensate for low ability? Evidence from British data

Denny

O’Sullivan

2007

Applied Economics Letters

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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. Abstract This paper uses cross section data to investigate whether the returns to education vary with the level of ability. 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. Terms of use: Documents in EconStor may

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“…One method empirical researchers have adopted to address the ability bias issue is to find proxies Z for ability, for example IQ or AFQT scores, and include these as regressors (e.g., Griliches and Mason, 1972;Griliches, 1977;Blackburn and Neumark, 1993). Now consider the regression of ln Y on S, EXP, and Z :…”

Section: Application To Returns To Schoolingmentioning

confidence: 99%

“…Since X is typically not randomly assigned and is correlated with U (e.g., unobserved ability will affect both schooling and income), OLS will generally fail to consistently estimate θ 1 . Nevertheless, if, as in Griliches and Mason (1972) and Griliches (1977), we can find a set of covariates Z (e.g., proxies for ability, such as AFQT scores) such that…”

Section: Introductionmentioning

confidence: 99%

A Flexible Nonparametric Test for Conditional Independence

2015

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This paper proposes a nonparametric test for conditional independence that is easy to implement, yet powerful in the sense that it is consistent and achieves n −1/2 local power. The test statistic is based on an estimator of the topological "distance" between restricted and unrestricted probability measures corresponding to conditional independence or its absence. The distance is evaluated using a family of Generically Comprehensively Revealing (GCR) functions, such as the exponential or logistic functions, which are indexed by nuisance parameters. The use of GCR functions makes the test able to detect any deviation from the null. We use a kernel smoothing method when estimating the distance. An integrated conditional moment (ICM) test statistic based on these estimates is obtained by integrating out the nuisance parameters. We simulate the critical values using a conditional simulation approach. Monte Carlo experiments show that the test performs well in finite samples. As an application, we test an implication of the key assumption of unconfoundedness in the context of estimating the returns to schooling.

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Education, Income, and Ability

Cited by 403 publications

References 12 publications

Empirical Strategies in Labor Economics

Empirical Strategies in Labor Economics

Can education compensate for low ability? Evidence from British data

A Flexible Nonparametric Test for Conditional Independence

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