Estimating the Education-Earnings Equation Using Geographic Variation

• DOI: 10.2139/ssrn.2639267
• Publication Date: 2015-08-05T11:49:16Z
• Authors: William R. Doyle; Benjamin T Skinner
• Keywords: Variation (astronomy); Geographic variation

We expand on the literature causal impact of postsecondary education earnings by introducing a richer set location-based measures as instruments for years education. Utilizing data from National Longitudinal Study Youth, 1997, we implement six different sets based geographic variation: presence four-year or two-year college in county, inverse log distance to in-state colleges, distance-weighted tuition and enrollment at all colleges. find that these alternative yield differing estimates educational attainment earnings. Using our preferred measure variation, one additional year results 9.5% increase yearly larger women, no measurable men.