Department of Economics
University of Oslo
and Statistics Norway.
Information about this author at RePEc
NBER Working Papers and Publications
|December 2014||Field of Study, Earnings, and Self-Selection|
with Lars Kirkebøen, Magne Mogstad: w20816
Why do individuals choose different types of post-secondary education, and what are the labor market consequences of those choices? We show that answering these questions is difficult because individuals choose between several unordered alternatives. Even with a valid instrument for every type of education, instrumental variables estimation of the payoffs require information about individuals’ ranking of education types or strong additional assumptions, like constant effects or restrictive preferences. These identification results motivate and guide our empirical analysis of the choice of and payoff to field of study. Our context is Norway’s post-secondary education system where a centralized admission process covers almost all universities and colleges. This process creates credible instr...
Published: Lars J. Kirkeboen & Edwin Leuven & Magne Mogstad, 2016. "Field of Study, Earnings, and Self-Selection," The Quarterly Journal of Economics, vol 131(3), pages 1057-1111.