Bayesian Fuzzy Regression Discontinuity Analysis of the Effect of Education on Earnings (joint with Siddhartha Chib)ISER External Seminars

Given the endogeneity of the schooling decision a common approach is to exploit policy changes in the context of 2SLS approaches to estimate earnings effects of schooling. In this paper we use the 1947 increase in minimum school leaving age and the discontinuity in schooling intake it induced to find the causal effect of an extra year of schooling on earnings. We approach the problem from the perspective of a fuzzy regression discontinuity design, modelling the fuzziness in terms of a discrete latent type variable. We propose a Bayesian parametric framework to estimate the earnings effects for compliers

Presented by:

Liana Jacobi (University of Melbourne)

Date & time:

18 Oct 2010 15:00 pm - 18 Oct 2010 16:30 pm

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