Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Angrist and Krueger (1991) attempt to overcome ability bias by exploiting the quarter of birth and compulsory schooling laws. (a) Under What assumptions is

image text in transcribed
2. Angrist and Krueger (1991) attempt to overcome ability bias by exploiting the quarter of birth and compulsory schooling laws. (a) Under What assumptions is the quarter of birth (i.e., a dummy variable for being born in J anuaryMarch of a year) a legitimate instrumental variable for education in an earnings equation? (6 points) (b) Who are the compliers in this study? (5 points) (Hint: Recall that compliers are the subpopulation Who are induced to change their behavior because of an intervention or natural experiment.) (c) Suppose the government is considering adjusting university tuition fees according to the economic returns to education. You are asked to review studies in economics literature and come up with a reasonable estimate of the economic return to an additional year of college education. Will you use Angrist and Krueger (1991) for this task and why? (5 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resources In The Urban Economy

Authors: Mark Perlman

1st Edition

1317332474, 9781317332473

More Books

Students also viewed these Economics questions