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Estimates of the returns to schooling in Taiwan: evidence from a regression discontinuity design

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  • Junchao Zhang

Abstract

Using micro-data from the Manpower Utilization Survey 1995–2015 of Taiwan, this paper exploits exogenous variation in years of schooling caused by the 9-year compulsory education reform to estimate the economic returns to schooling. The results of fuzzy regression discontinuity design indicate that the causal effect of education on wage is approximately 5.6%, smaller than the corresponding ordinary least squares estimates. Our results are robust to various specifications and placebo tests.

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  • Junchao Zhang, 2020. "Estimates of the returns to schooling in Taiwan: evidence from a regression discontinuity design," Applied Economics Letters, Taylor & Francis Journals, vol. 27(7), pages 533-538, April.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:7:p:533-538
    DOI: 10.1080/13504851.2019.1638493
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    Cited by:

    1. Zhongkun Zhu & Wanglin Ma & Chenxin Leng, 2022. "ICT Adoption, Individual Income and Psychological Health of Rural Farmers in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(1), pages 71-91, February.
    2. Gregory Clark & Christian Abildgaard Nielsen, 2024. "The Returns to Education: A Meta-study," Working Papers 0249, European Historical Economics Society (EHES).

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