Partial Identification and Bound Estimation of the Average Treatment Effect of Education on Earnings for South Africa

24 Pages Posted: 4 Mar 2015

See all articles by Martine Mariotti

Martine Mariotti

Australian National University (ANU) - Research School of Economics

Juergen Meinecke

Australian National University (ANU)

Date Written: April 2015

Abstract

We partially identify the average treatment effect of education on earnings and non‐parametrically estimate its upper bound for African, Coloured (mixed race) and White males in South Africa. We address endogenous selection into education, cohort effects and endogenous selection into work. Using the September 2007 South African Labour Force Survey, the upper bound estimates are considerably lower than existing parametric point estimates of the return to education. As a lesson, policy makers should focus less on increasing the amount of education obtained by Africans and Coloureds, but rather on measures that can grow the return to existing levels of education.

Suggested Citation

Mariotti, Martine and Meinecke, Juergen, Partial Identification and Bound Estimation of the Average Treatment Effect of Education on Earnings for South Africa (April 2015). Oxford Bulletin of Economics and Statistics, Vol. 77, Issue 2, pp. 210-233, 2015, Available at SSRN: https://ssrn.com/abstract=2573399 or http://dx.doi.org/10.1111/obes.12059

Martine Mariotti (Contact Author)

Australian National University (ANU) - Research School of Economics ( email )

Canberra
Australia

Juergen Meinecke

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

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