Ability bias, skewness and the college wage premium
Naylor, Robin Andrew and Smith, Jeremy (2009) Ability bias, skewness and the college wage premium. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.907).
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Changes in educational participation rates across cohorts are likely to imply changes in the ability-education relationship and thereby to impact on estimated returns to education. We show that skewness in the underlying ability distribution is a key determinant of the impact of graduate expansion on the college wage premium. Calibrating the model against the increased proportion of university students in Britain, we find that changes in the average ability gap between university students and others are likely to have mitigated demand-side forces.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HD Industries. Land use. Labor|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Wages -- Effect of education on, Wages -- College graduates, Cohort analysis|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Official Date:||May 2009|
|Number of Pages:||13|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
Becker, G.S., 1975, Human Capital, 2nd Edition, New York: National Bureau of Economic Research.
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