Estimates of the causal effects of education on earnings over the lifecycle with cohort effects and endogenous education

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Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in CESifo Economic Studies following peer review. The definitive publisher-authenticated version Giuseppe Migali, Ian Walker; Estimates of the Causal Effects of Education on Earnings over the Life Cycle with Cohort Effects and Endogenous Education, CESifo Economic Studies, Volume 64, Issue 3, 1 September 2018, Pages 516–544, https://doi.org/10.1093/cesifo/ifx020 is available online at: https://academic.oup.com/cesifo/article/64/3/516/4773953
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https://doi.org/10.1093/cesifo/ifx020
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Keywords

Returns to education, Earnings inequality, Lifecycle effects, Cohort effects, Endogeneity

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Estimates of the causal effects of education on earnings over the lifecycle with cohort effects and endogenous education. / Migali, Giuseppe ; Walker, Ian.
In: CESifo Economic Studies, Vol. 64, No. 3, 01.09.2018, p. 516-544.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Bibtex

@article{7ce10540cbfa42de9c197641a53b5d39,

title = "Estimates of the causal effects of education on earnings over the lifecycle with cohort effects and endogenous education",

abstract = "We estimate the wage premia associated with educational attainments focusing on the lifecycle pattern of earnings. We employ a model where educational attainment is discrete and ordered and log wages are determined by a simple function of work experience for each level of attainment. We distinguish between lifecycle and cohort effects by exploiting the fact that we have a short panel. We find that age earnings profiles lose the traditional bell shape and become flat when we allow for cohort differences. Females still have higher college premia compared to males. However, there are clear earnings inequalities between cohorts with smaller college premia for younger compared to older cohorts, for both males and females.",

keywords = "Returns to education, Earnings inequality, Lifecycle effects, Cohort effects, Endogeneity",

author = "Giuseppe Migali and Ian Walker",

note = "This is a pre-copy-editing, author-produced PDF of an article accepted for publication in CESifo Economic Studies following peer review. The definitive publisher-authenticated version Giuseppe Migali, Ian Walker; Estimates of the Causal Effects of Education on Earnings over the Life Cycle with Cohort Effects and Endogenous Education, CESifo Economic Studies, Volume 64, Issue 3, 1 September 2018, Pages 516–544, https://doi.org/10.1093/cesifo/ifx020 is available online at: https://academic.oup.com/cesifo/article/64/3/516/4773953",

year = "2018",

month = sep,

day = "1",

doi = "10.1093/cesifo/ifx020",

language = "English",

volume = "64",

pages = "516--544",

journal = "CESifo Economic Studies",

issn = "1610-241X",

publisher = "Oxford University Press",

number = "3",

}

RIS

TY - JOUR

T1 - Estimates of the causal effects of education on earnings over the lifecycle with cohort effects and endogenous education

AU - Migali, Giuseppe

AU - Walker, Ian

N1 - This is a pre-copy-editing, author-produced PDF of an article accepted for publication in CESifo Economic Studies following peer review. The definitive publisher-authenticated version Giuseppe Migali, Ian Walker; Estimates of the Causal Effects of Education on Earnings over the Life Cycle with Cohort Effects and Endogenous Education, CESifo Economic Studies, Volume 64, Issue 3, 1 September 2018, Pages 516–544, https://doi.org/10.1093/cesifo/ifx020 is available online at: https://academic.oup.com/cesifo/article/64/3/516/4773953

PY - 2018/9/1

Y1 - 2018/9/1

N2 - We estimate the wage premia associated with educational attainments focusing on the lifecycle pattern of earnings. We employ a model where educational attainment is discrete and ordered and log wages are determined by a simple function of work experience for each level of attainment. We distinguish between lifecycle and cohort effects by exploiting the fact that we have a short panel. We find that age earnings profiles lose the traditional bell shape and become flat when we allow for cohort differences. Females still have higher college premia compared to males. However, there are clear earnings inequalities between cohorts with smaller college premia for younger compared to older cohorts, for both males and females.

AB - We estimate the wage premia associated with educational attainments focusing on the lifecycle pattern of earnings. We employ a model where educational attainment is discrete and ordered and log wages are determined by a simple function of work experience for each level of attainment. We distinguish between lifecycle and cohort effects by exploiting the fact that we have a short panel. We find that age earnings profiles lose the traditional bell shape and become flat when we allow for cohort differences. Females still have higher college premia compared to males. However, there are clear earnings inequalities between cohorts with smaller college premia for younger compared to older cohorts, for both males and females.

KW - Returns to education

KW - Earnings inequality

KW - Lifecycle effects

KW - Cohort effects

KW - Endogeneity

U2 - 10.1093/cesifo/ifx020

DO - 10.1093/cesifo/ifx020

M3 - Journal article

VL - 64

SP - 516

EP - 544

JO - CESifo Economic Studies

JF - CESifo Economic Studies

SN - 1610-241X

IS - 3

ER -

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