Unobserved heterogeneity and risk in wage variance: Does schooling provide earnings insurance?

We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education. We replicate the original study on US men and extend to US women, UK men and German men. Most original results are not robust. A college education cannot universally be considered an insurance against unpredictability of wages. One conclusion is unequivocally confirmed: uncertainty strongly dominates unobserved heterogeneity.

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Year of publication:	2011
Authors:	Mazza, Jacopo ; van Ophem, Hans ; Hartog, Joop
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Lohndifferenzierung \| Bildungsniveau \| Bildungsertrag \| Geschlecht \| USA \| Großbritannien \| Deutschland \| wage inequality \| wage uncertainty \| unobserved heterogeneity \| selectivity \| education \| replication

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Series:	IZA Discussion Papers ; 5531
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	664666892 [GVK] hdl:10419/52039 [Handle]
Classification:	C01 - Econometrics ; C33 - Models with Panel Data ; C34 - Truncated and Censored Models ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	EconStor

Persistent link: https://www.econbiz.de/10010278739