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The Returns to Education in Thailand: A Pseudo-Panel Approach

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  • Warunsiri, Sasiwimon
  • McNown, Robert

Abstract

Summary This study employs the pseudo-panel approach for estimating returns to education in Thailand, while treating the endogeneity bias common to estimates from data on individuals. Pseudo-panel data are constructed from repeated cross-sections of Thailand's National Labor Force Surveys of workers born during 1946-67. Estimates show a downward bias of the returns to education in least squares regressions with individual data, a result confirmed with instrumental variable estimation. The overall rate of return is between 14% and 16%. Females have higher returns than males, and workers in urban areas have higher returns than those in rural areas.

Suggested Citation

  • Warunsiri, Sasiwimon & McNown, Robert, 2010. "The Returns to Education in Thailand: A Pseudo-Panel Approach," World Development, Elsevier, vol. 38(11), pages 1616-1625, November.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:11:p:1616-1625
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