The causal effect of education on wages revisited


Dickson, M., 2013. The causal effect of education on wages revisited. Oxford Bulletin of Economics and Statistics, 75 (4), pp. 477-498.

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This study estimates the return to education in Britain using two instrumental variable (IV) estimators: one exploits variation in schooling associated with early smoking, the other uses the raising of the school leaving age; both affect a sizeable proportion of the sample. Early smoking is found to be a strong and valid IV and unlike previous IV strategies uses variations in education at numerous points across the distributions of (i) education, and (ii) ability. Thus whilst still a ‘local average treatment effect’ the estimate is closer to the average effect of additional education, akin to least squares but corrected for endogeneity.


Item Type Articles
CreatorsDickson, M.
Related URLs
Uncontrolled Keywordspoverty,work,justice
DepartmentsFaculty of Humanities & Social Sciences > Social & Policy Sciences
Research Centres & Institutes > Institute for Policy Research
Research CentresCentre for Analysis of Social Policy (CASP)
ID Code31870


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