TY  - RPRT
        AU  - Klein, Roger
AU  - Vella, Francis
        TI  - Estimating the Return to Endogenous Schooling Decisions for Australian Workers via Conditional Second Moments
        PY  - 2006/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2407
        UR  - https://www.iza.org/publications/dp2407
        AB  - 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.
        KW  - endogeneity
KW  - returns to schooling
KW  - heteroskedasticity
        ER  -