Bhuller, Manudeep; Mogstad, Magne; Salvanes, Kjell G. - Institute for the Study of Labor (IZA) - 2011
schooling in current and lifetime earnings. We use these results to assess the importance of life-cycle bias in earnings … commonly used identification strategies. Our estimates demonstrate a strong life-cycle bias, often exceeding the bias from … assuming that schooling is exogenous. We further explore the problems caused by life-cycle bias in research on the economic …