%0 Report
        %A Bhuller, Manudeep
%A Mogstad, Magne
%A Salvanes, Kjell G.
        %T Life-Cycle Bias and the Returns to Schooling in Current and Lifetime Earnings
        %D 2011
        %8 2011 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 5788
        %U https://www.iza.org/index.php/publications/dp5788
        %X This paper uses a unique data set with nearly career-long earnings histories to provide evidence on the returns to schooling in current and lifetime earnings. We use these results to assess the importance of life-cycle bias in earnings regressions using current earnings as a proxy for lifetime earnings. To account for the endogeneity of schooling, we apply three commonly used identification strategies. Our estimates demonstrate a strong life-cycle bias, often exceeding the bias from assuming that schooling is exogenous. We further explore the problems caused by life-cycle bias in research on the economic returns to schooling, and discuss possible remedies.
        %K returns to schooling
%K life-cycle bias
%K lifetime earnings
%K current earnings
%K errors-in-variables model