uu.seUppsala University Publications
Change search
ReferencesLink to record
Permanent link

Direct link
Proxying Ability by Family Background in Returns to Schooling Estimations is Generally a Bad Idea
Institute of Labour Market Policy Evaluation (IFAU).
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2008 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 110, no 4, 853-875 p.Article in journal (Refereed) Published
Abstract [en]

When schooling is measured with error and data on ability are lacking, return to schooling estimates will be subject to positive omitted variable bias (OVB) and negative measurement error bias (MEB). We investigate how these biases are affected when ability is proxied by family background variables. We show that the effect on OVB is uncertain, while MEB invariably increases in magnitude. Our empirical analysis demonstrates that MEB generally dominates OVB. With more background variables or increased measurement error, the total bias rapidly becomes negative and increasing in magnitude, thereby driving the return estimate further and further away from the true value.

Place, publisher, year, edition, pages
2008. Vol. 110, no 4, 853-875 p.
Keyword [en]
Consistent estimates of omitted variable bias and measurement error bias, Measurement error, Missing data, Proxy variables
National Category
Research subject
URN: urn:nbn:se:uu:diva-108511DOI: 10.1111/j.1467-9442.2008.00564.xISI: 000261274300011OAI: oai:DiVA.org:uu-108511DiVA: diva2:236086
Available from: 2009-09-21 Created: 2009-09-21 Last updated: 2011-01-04Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text
By organisation
Department of Economics
In the same journal
Scandinavian Journal of Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 183 hits
ReferencesLink to record
Permanent link

Direct link