@techreport{NBERw7989,
 title = "Interpreting Instrumental Variables Estimates of the Returns to Schooling",
 author = "Jeffrey R. Kling",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "7989",
 year = "2000",
 month = "October",
 URL = "http://www.nber.org/papers/w7989",
 abstract = {This paper synthesizes economic insights from theoretical models of schooling choice based on individual benefits and econometric work interpreting instrumental variables estimates as weighted averages of individual-specific causal effects.  Linkages are illustrated using college proximity to instrument for schooling. After characterizing groups differentially affected by the instrument according to family background, I directly compute weights underlying estimation of the overall return.  In analyzing the level of schooling at which individuals change their behavior in response to the instrument, I demonstrate that this instrument has its greatest impact on the transition from high school to college.  Specification robustness is also examined.},
}