Measurement Error, Misspecification, and the Return to Foreign Education

47 Pages Posted: 22 Apr 2009  

Albert Yung-Hsu Liu

Cornell University - Department of Economics; Cornell University - Cornell Higher Education Research Institute

Date Written: April 22, 2009

Abstract

I use unique data from the October Supplement of the Current Population Survey to show that the return to foreign education among immigrants is 3.3 percent. Previous studies generate upwardly biased estimates of this parameter because they (1) systematically misattribute domestic education as foreign education and (2) include domestic education as an endogenous control variable. The results indicate that foreign education is less portable than previously thought. Non-linear specifications indicate that the difference in the return to foreign education among immigrants and the return to domestic education among natives is limited to workers with less than twelve years of schooling.

JEL Classification: I21, J24, J31, J61

Suggested Citation

Liu, Albert Yung-Hsu, Measurement Error, Misspecification, and the Return to Foreign Education (April 22, 2009). Available at SSRN: https://ssrn.com/abstract=1393146 or http://dx.doi.org/10.2139/ssrn.1393146

Albert Yung-Hsu Liu (Contact Author)

Cornell University - Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States

Cornell University - Cornell Higher Education Research Institute ( email )

Ithaca, NY 14853-3901
United States
(607) 254-4777 (Phone)

Paper statistics

Downloads
41
Abstract Views
440