Abstract
Is the wage gap between majors in human arts and other fields caused by the education? If the educational choice is endogenous, the wage gap may instead be caused by selection. We document that individuals' educational choice is correlated with that of older students and by the concentration of women in their high school. Conditional on high school fixed effects, these characteristics are unlikely to affect post-university wages and are plausible instruments for the educational choice. Our 2SLS estimates reveal that the gap in returns to education is negligible, implying that the wage gap is attributable to selection.
| Original language | English |
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| Place of Publication | Copenhagen |
| Publisher | Centre for Economic and Business Research |
| Number of pages | 41 |
| Publication status | Published - 2009 |
Keywords
- Faculty of Social Sciences
- instruments