TY  - RPRT
        AU  - Andini, Corrado
        TI  - Persistence Bias and Schooling Returns
        PY  - 2014/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8143
        UR  - https://www.iza.org/publications/dp8143
        AB  - A well-established empirical literature suggests that individual wages are persistent. Several theoretical arguments support this empirical finding. Yet, the standard approach to the estimation of schooling returns does not account for this fact. This paper investigates the consequences of disregarding earnings persistence. In particular, it shows that the most commonly used static-model estimators of schooling coefficients are subject to an omitted-variable bias which can be named "persistence bias".
        KW  - schooling
KW  - wages
KW  - dynamic panel-data models
        ER  -