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• W1544473487 abstract "[The authors'] objective is to estimate the average treatment effect (ATE) of education on earnings for African men in South Africa. Estimation of the ATE in [the] data is difficult because of omitted ability bias and a high degree of sample selection due to low labor force participation. Manski and Pepper (2000) suggest a promising nonparametric identification strategy but it only helps with the problem of omitted ability bias. [The authors] propose an extension of their identification strategy to deal with the sample selection problem. Accounting for ability and selection bias, [the authors] compute upper bounds on the ATE for the years 1995 and 2000. [The authors] estimate an upper bound of 12.64 per cent in 1995 and 10.68 per cent in 2000. Compared to parametric estimation [the authors'] bounds are informative: the [ordinary least squares] OLS returns to schooling equal 15.59 per cent in 1995 and 15.31 per cent in 2000. [The] results suggest that many parametric estimates are severely upwards biased, which results from unobserved heterogeneity." @default.
• W1544473487 created "2016-06-24" @default.
• W1544473487 creator A5028731684 @default.
• W1544473487 date "2009-12-01" @default.
• W1544473487 modified "2023-09-27" @default.
• W1544473487 title "Nonparametric bounds on returns to education in South Africa: overcoming ability and selection bias" @default.
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• W1544473487 hasPublicationYear "2009" @default.
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