Schooling, wages and the role of unobserved ability in the Philippines Public Deposited

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  • March 21, 2019
  • Zayats, Yaraslau
    • Affiliation: College of Arts and Sciences, Department of Economics
  • The dissertation analyzes the impacts of an individual's unobserved ability on schooling and wages in the context of a developing country using rich data from the Cebu (Philippines) Longitudinal Health and Nutrition Survey. Unlike any previous study, my model allows for grade repetition and school reentry after dropping out of school. Both phenomena are common in developing countries in general, and in the Philippines in particular. Semiparametric approach is used to control for an individual's unobserved ability. The results indicate that children with lower innate ability enter school at a later age and complete fewer years of school. They are also more likely to drop out of school at all levels of education, but the effect of lower ability diminishes at higher levels of education. A standard Mincer-type regression appears to be misspecified. Results strongly suggest presence of heterogeneity in the returns to education by an individual's ability. Rates of return to education appear to be nonlinear differing across three educational levels.
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  • In Copyright
  • Mroz, Thomas A.
Degree granting institution
  • University of North Carolina at Chapel Hill
  • Open access

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