Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 6, Problem 5P
a)
To determine
The basic self-selection issue involved in returns to education.
b)
To determine
The contradictions of self-selecting theory.
c)
To determine
The effect of government provided job training programme on the self-selection issue.
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Students have asked these similar questions
a. Describe the basic self-selection issue involved whenever discussing the returns to education. b. Does the fact that some high school or college dropouts go on to earn vast amounts of money (e.g., Bill Gates dropped out of Harvard without ever graduating) contradict the self-selection story? c. Most government-provided job training programs are optional to the worker. Describe how the self-selection issue might be used to call into question empirical results suggesting there are large economic benefits to be gained by requiring all workers to receive government-provided job training.
What factors do economists suppose influence the amount of education people choose to obtain? What are some events that could influence the decision in this framework?
The textbook discusses some strategies for correcting for ability bias when trying to estimate the rate of return to education.
a) Explain ability bias.
b) Discuss the method of using data on identical twins to control for ability bias.
c) Discuss the method of using certain birth dates to control for ability bias.
The Textbook: Labor Economics, 8th Edition, by George Borjas, published by McGraw-Hill.
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