TY  - JOUR
AU  - Kling,Jeffrey R.
TI  - Interpreting Instrumental Variables Estimates of the Returns to Schooling
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7989
PY  - 2000
Y2  - October 2000
UR  - http://www.nber.org/papers/w7989
L1  - http://www.nber.org/papers/w7989.pdf
N1  - Author contact info:
Jeffrey R. Kling
Congressional Budget Office
3403 Ordway St NW
Washington, DC 20016
E-Mail: jeffrey.r.kling@gmail.com
AB  - 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.
ER  -