TY  - RPRT
        AU  - Flores-Lagunes, Alfonso
AU  - Light, Audrey
        TI  - Interpreting Degree Effects in the Returns to Education
        PY  - 2009/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4169
        UR  - https://www.iza.org/index.php/publications/dp4169
        AB  - Researchers often identify degree effects by including degree attainment (D) and years of schooling (S) in a wage model, yet the source of independent variation in these measures is not well understood. We argue that S is negatively correlated with ability among degree-holders because the most able graduate the fastest, while a positive correlation exists among dropouts because the most able benefit from increased schooling. Using data from the NLSY79, we find support for this explanation, and we reject the notion that the independent variation in S and D reflects reporting error.
        KW  - returns to education
KW  - degree effects
        ER  -