Social Sciences
4 years ago

Study reveals widespread misreporting of education levels impacts wage estimates

RePEc: Research Papers in Economics
Estimating Returns to Schooling When Schooling is Misreported
Thomas J. Kane, Cecilia Elena Rouse, Doug Staiger

Paper Summary

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The article discusses how people often misreport their level of education, affecting estimates of the benefits of schooling. By comparing wages and test scores, researchers found that many people inaccurately report their educational attainment. This leads to underestimating the value of each year of schooling and overestimating the impact of having a degree. The errors also affect estimates of the benefits of schooling from natural experiments.