Hendricks, Lutz and Schoellman, Todd (2009): Student Abilities During the Expansion of U.S. Education, 1950-2000.
Download (987kB) | Preview
Since 1950, U.S. educational attainment has increased substantially. While the median student in 1950 dropped out of high school, the median student today attends some college. In an environment with ability heterogeneity and positive sorting between ability and school tenure, the expansion of education implies a decrease in the average ability of students conditional on school attainment. Using a calibrated model of school choice under ability heterogeneity, we investigate the quantitative impact of rising attainment on ability and measured wages. Our findings suggest that the decline in average ability depressed wages conditional on schooling by 31-58 percentage points. We also find that the entire rise in the college wage premium since 1950 can be attributed to the rising mean ability of college graduates relative to high school graduates.
|Item Type:||MPRA Paper|
|Original Title:||Student Abilities During the Expansion of U.S. Education, 1950-2000|
|Keywords:||Education; ability; skill premium|
|Subjects:||I - Health, Education, and Welfare > I2 - Education and Research Institutions
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity
|Date Deposited:||18. Jan 2009 05:35|
|Last Modified:||16. Feb 2013 02:13|
Bishop, John H. (1989). “Is the test score decline responsible for the productivity growth decline?” American Economic Review 79(1): 178-197.
Bound, John; George Johnson (1992). “Changes in the structure of wages in the 1980s: an evaluation of alternative explanations.” American Economic Review 82: 371-92.
Bowles, Samuel; Herbert Gintis; Melissa Osborne (2002). “The Determinants of Indi- vidual Earnings: Skills, Preferences, and Schooling.” Journal of Economic Literature 39(4): 1137–176.
Card, David; Thomas Lemieux (2001). “Can falling supply explain the rising return to college for younger men? A cohort-based analysis.” Quarterly Journal of Economics 116(2): 705-46.
Cunha, Flavio; James Heckman; Salvador Navarro (2005). “Separating uncertainty from heterogeneity in life cycle earnings.” Oxford Economic Papers 57: 191-261.
Finch, F. H. (1946). Enrollment Increases and Changes in the Mental Level. Stanford University Press.
Flynn, James R. (1984). “The mean IQ of Americans: Massive gains 1932 to 1978.” Psychological Bul letin 95: 29-51.
Flynn, James, R. (1999). “Searching for justice: The discovery of IQ gains over time.” American Psychologist 54: 5-20.
Geweke, John; Michael Keane (2000). “An empirical analysis of earnings dynamics among men in the PSID: 1968-1989.” Journal of Econometrics 96: 293-356.
Goldin, Claudia; Lawrence F. Katz (2008). The Race Between Education and Technology. Cambridge: Harvard University Press.
Guvenen, Fatih (2007). “Learning Your Earning: Are Labor Income Shocks Really Very Persistent?” American Economic Review 97: 687-712.
Hanushek, Eric A.; Ludger Woessman (2008). “The role of cognitive skills in economic development.” Journal of Economic Literature 46(3): 607-668.
Heckman, James; Edward Vytlacil (2001). “Identifying the Role of Cognitive Ability in Explaining the Level of and Change in the Return to Schooling.” Review of Economics and Statistics 83(1): 1-12.
Herrnstein, R. J.; C. A. Murray (1994). The Bel l Curve: Intel ligence and Class Structure in American Life. New York: Free Press.
Juhn, Chinhui; Dae Il Kim; Francis Vella (2005). “The expansion of college education in the United States: Is there evidence of declining cohort quality?” Economic Inquiry 43(2): 303-315.
Katz, Lawrence; David Autor (1999). “Changes in the wage structure and earnings inequality.” In: Handbook of Labor Economics, Vol. 3, ed. O. Ashenfelter and D. Card. Elsevier.
Mincer, Jacob (1974). Schooling, Experience, and Earnings. New York: Columbia University Press.
Navarro, Salvador (2008). “Using Observed Choices to Infer Agent’s Information: Re- considering the Importance of Borrowing Constraints, Uncertainty and Preferences in College Attendance.” Mimeo. University of Wisconsin.
NLS User Services (1992). “NLS79 Proﬁles of American Youth. Addendum to Attach- ment 106. http://www.nlsinfo.org/ordering/display db.php3.
Rangazas, Peter (2002). “The Quantity and Quality of Schooling and U.S. Labor Pro- ductivity Growth (1870-2000).” Review of Economic Dynamics 5: 932-964.
Restuccia, Diego; Guillaume Vandenbroucke (2008). “The evolution of U.S. education: a macroeconomic analysis.” Mimeo. University of Toronto.
Ruggles, Stephen; Matthew Sobeck (1997). “Integrated Public Use Microdata Series: Version 2.0.” Minneapolis: Historical Census Pro jects, University of Minnesota.
Taubman, Paul; T. Wales (1972). Mental ability and higher educational attainment in the 20th Century. Berkeley: National Bureau of Economic Research and Carnegie Commission on Higher Education.