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Economic Returns to Education in France: OLS and Instrumental Variable Estimations

Abstract : This article estimates the economic returns to schooling as well as analyzing other explanatory factors for the French labor market. It addresses the issue of endogeneity bias and proposes two new instruments for use in the instrumental variable two-stage least squares technique. Our results show that the proposed instruments are relevant and adequate, based on evidence from the available literature. After using the proposed instruments, we find that the OLS coefficients for schooling are biased downwards. Finally, we choose between the two proposed instruments.
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https://halshs.archives-ouvertes.fr/halshs-00955559
Contributor : Bertille Theurel <>
Submitted on : Tuesday, March 4, 2014 - 4:40:18 PM
Last modification on : Tuesday, September 17, 2019 - 9:51:10 AM

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  • HAL Id : halshs-00955559, version 1

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Sajjad Haider Bhatti, Jean Bourdon, Aslam Muhammad. Economic Returns to Education in France: OLS and Instrumental Variable Estimations. The Lahore Journal of Economics, 2013, Vol.18 (N°2), pp.51-63. ⟨halshs-00955559⟩

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