%0 Report
        %A Klein, Roger
%A Vella, Francis
        %T Estimating the Return to Endogenous Schooling Decisions for Australian Workers via Conditional Second Moments
        %D 2006
        %8 2006 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 2407
        %U https://www.iza.org/publications/dp2407
        %X This paper employs conditional second moments to identify the impact of education in wage regressions where education is treated as endogenous. This approach avoids the use of instrumental variables in a setting where instruments are frequently not available. We employ this methodology to estimate the returns to schooling for a sample of Australian workers. We find that accounting for the endogeneity of education in this manner increases the estimated return to education from 6 percent to 10 percent.
        %K endogeneity
%K returns to schooling
%K heteroskedasticity