Can education compensate for low ability?:evidence from the British data

Denny, Kevin and O'Sullivan, Vincent (2007) Can education compensate for low ability?:evidence from the British data. Applied Economics Letters, 14 (9). pp. 657-660. ISSN 1350-4851

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Abstract

This article investigates whether the returns to education vary with the level of cognitive ability. Unlike much of the literature, this article finds that the return to schooling is lower for those with higher cognitive ability indicating that education can act as a substitute for observed ability. Using quantile regressions we also find that, again unlike most of the literature, returns are higher at lower quintiles of the conditional earnings distribution. This suggests that education is also a substitute for unobserved ability. The policy implications are that increasing education in general and particularly for those with lower ability should reduce income inequality.

Item Type:
Journal Article
Journal or Publication Title:
Applied Economics Letters
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
70538
Deposited By:
Deposited On:
26 Aug 2014 09:58
Refereed?:
Yes
Published?:
Published
Last Modified:
11 Feb 2020 08:24