Microeconometric Methods for the Estimation of Heterogeneous Returns to Schooling
Microeconometric Methods for the Estimation of Heterogeneous Returns to Schooling
Conventional empirical studies on the returns to schooling assume that the return for an additional year of schooling is the same across individuals. In this project we relaxed this assumption by developing and applying new microeconometric methods that account for heterogeneous returns to schooling and identify the causal effects of schooling. Policy measures that change the individual´s cost of schooling lead to a change in the composition of individuals who invest in schooling. Hence we developed microeconometric tools to identify the causal effects of these policy measures. According to our studies the average returns to education is 6 percent in Germany, with a slightly increasing tendency in recent years. The project was part of the DFG research group on Heterogeneous Labour: Positive and Normative Aspects of the Skill Structure of Labor a cooperation of the University of Konstanz and the ZEW Mannheim. Three students finished their PhD thesis in the project (Anton Flossmann, Markus Jochmann, Michael Maier).
