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    Title: How Many and What Instruments Are Needed to Estimate Returns to Education? The Case of Taiwan
    Authors: 莊奕琦
    Chuang, Yih-chyi
    Lai, Wei-wen
    Contributors: 經濟系
    Keywords: Human capital investment;return to education;endogenous bias;ability bias;instrumental variable;local average treatment effect
    Date: 2018-12
    Issue Date: 2020-04-20 14:46:02 (UTC+8)
    Abstract: This paper applies the 2SLS instrumental variable method to estimate the rate of return to education using data from the 1990, 2000, and 2010 Taiwan’s Manpower Utilization Survey. Tests are conducted to determine the most effective valid instrument from all combinations of the four IVs. The estimated rate of return to education is relatively higher by the IV method than by the OLS method. However, adding more IVs do not imply a better estimation and institutional, geographic, and cultural variables are more plausible candidate for valid instruments. Moreover, downward bias by OLS estimation is found to be greater for females than for males
    Relation: International Journal of Applied Business & Economic Research, Vol.16, No.4, pp.861-877
    Data Type: article
    Appears in Collections:[經濟學系] 期刊論文

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