Location of Repository

MEASUREMENT ERROR BIAS IN RETURNS TO EDUCATION: EVIDENCE FROM A DEVELOPING COUNTRY - SRI LANKA

By Rasika Ranasinghe and Thomas Hertz

Abstract

There is a continuing debate about the size and direction of the bias in estimates of returns to education. Evidence from developing countries is particularly scarce. This paper addresses the problem of measurement error bias in returns to schooling for Sri Lanka, by exploiting dual measurements of reported schooling for a sub-sample of the data and deriving a reliability estimate of schooling. This is used to obtain measurement error corrected fixed effects estimates of the proportionate increase associated with an additional level of schooling. This corrected measure is 5.5%, which is less than the OLS estimate of 7.8% for two person households.Rate of Return, Economic Development, Educational Economics, Human Capital

OAI identifier:

Suggested articles

Preview

Citations

  1. (1999). Ability Biases in Schooling Returns and Twins; A Test and New Estimates,”
  2. (2000). ailing Address: Rasika Ranasinghe, Department of Economics,Box 5552, Conneticut College, 70 Mohegan Avenue,
  3. (1997). Earnings Functions and Rates of Return to Education in Sri Lanka,”
  4. (1995). Earnings, Schooling and Ability Revisited,”
  5. Economic Gri ling;
  6. (1977). Estimating the Returns to Schoo Problems,”
  7. (2000). Estimating the Returns to Schooling; Progress on Some Econometric Problems,” Working Paper, 7769,
  8. Free Education in Sri Lanka; Does it Eliminate the Family Effect?”
  9. (1998). Further Estimates of the Economic Return to Schooling from a New Sample of Twins,” Working Paper,
  10. (2001). Individual Heterogeneity in the Returns to Schooling; Instrumental Va ables Quantile Regression Using Twins Data,”
  11. (2000). Interpreting Instrumental Variables Estimate Schooling,” Working Paper, 7989,
  12. (1997). National Bureau Kli s of the Returns to Min nce and Earnings,
  13. (2004). Returns to Schooling, Mobility and the Gender Wage Gap; Evidence from Sri Lan Economics,
  14. (2001). Schooling and Labor Market Consequences of School Construction in Indonesia; Evidence from an Unusual Policy Experi Review,
  15. (1994). Schooling from a New Sample
  16. (1974). Schooling,
  17. (1998). Sri Lanka Social Services Issues,” Report, 17748-CE, Washington, DC: Poverty Reduction and Economic Management, South Asia Region, The World Bank.
  18. (2003). Upward Bias in the Estimated Returns to Education; Evidence from South Africa,”

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.