This paper acknowledges that the relationship between log wages and schooling is considerably more complex than the simple human capital earnings function suggests and that schooling is endogenous. We estimate a model where educational attainment is discrete and ordered and log wages are...

This paper uses UK data to estimate the returns to schooling. We address the endogeneity of schooling by exploiting the experimental nature of two changes in the minimum school leaving age to instrument eduction. The corrected estimates of the return to education indicate the presence of a large...