Estimating the returns to college quality with multiple proxies for quality

• 成果类型: Article
• 署名作者: Black, Dan A.; Smith, Jeffrey A.
• 署名单位: Syracuse University; University of Chicago; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/505067
• 发表日期: 2006
• 页码: 701-728
• 关键词: Measurement error; earnings; achievement; variables; CHOICE; wages

摘要

Existing studies of the effects of college quality on wages typically rely on a single proxy variable for college quality. This study questions the wisdom of using a single proxy given that it likely contains substantial measurement error. We consider four econometric approaches to the problem that involve the use of multiple proxies for college quality: factor analysis, instruments variables, a method recently proposed by Lubotsky and Wittenberg, and a GMM estimator. Our estimates suggest that the existing literature understates the wage effects of college quality and illustrate the value of using multiple proxies in this and other similar contexts.