This paper estimates returns to education using a dynamic model of educational choice that synthesizes approaches in … differentials. For some, there are substantial causal effects of education at all stages of schooling. …

responses to education and find evidence for substantial heterogeneity in unobserved variables on which agents make choices. The … estimated treatment effects of education are decomposed into the direct benefits of attaining a given level of schooling and … estimated treatment effects. While the estimated causal effects of education are substantial for most outcomes, we also estimate …