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Heterogeneity in Marginal Non-Monetary Returns to Higher Education

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  • Daniel A Kamhöfer
  • Hendrik Schmitz
  • Matthias Westphal

Abstract

In this paper we estimate the effects of college education on cognitive abilities, health, and wages, exploiting exogenous variation in college availability. By means of semiparametric local instrumental variables techniques we estimate marginal treatment effects in an environment of essential heterogeneity. The results suggest positive average effects on cognitive abilities, wages, and physical health. Yet, there is heterogeneity in the effects, which points toward selection into gains. Although the majority of individuals benefits from more education, the average causal effect for individuals with the lowest unobserved desire to study is zero for all outcomes. Mental health effects, however, are absent for the entire population.

Suggested Citation

  • Daniel A Kamhöfer & Hendrik Schmitz & Matthias Westphal, 2019. "Heterogeneity in Marginal Non-Monetary Returns to Higher Education," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 205-244.
    • Handle: RePEc:oup:jeurec:v:17:y:2019:i:1:p:205-244.
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    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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