Mohitosh Kejriwal
;
Xiaoxiao Li
;
Evan Totty

multidimensional skills and the returns to schooling: evidence from an interactive fixed‐effects approach and a linked survey‐administrative data set (replication data)

This paper presents new evidence on returns to schooling based on an interactive fixed-effects framework that allows for multiple unobserved skills with potentially time-varying prices as well as individual-level heterogeneity in returns. This constitutes a substantive generalization of most existing approaches. Our empirical analysis employs a unique linked survey-administrative panel data set on education and earnings. We find average marginal returns to schooling of about 2.8-4.4% relative to least squares/instrumental variable estimates between 7.7% and 12.7%. Omitted ability accounts for a larger fraction of the aggregate least squares bias compared to heterogeneity. We also find considerable heterogeneity in individual returns.

Data and Resources

Suggested Citation

Kejriwal, Mohitosh; Li, Xiaoxiao; Totty, Evan (2020): Multidimensional skills and the returns to schooling: Evidence from an interactive fixed‐effects approach and a linked survey‐administrative data set (replication data). Version: 1. Journal of Applied Econometrics. Dataset. http://dx.doi.org/10.15456/jae.2022327.0713892311