>> But "controling for IQ" isn't warranted if years of schooling is >> endogenous. Kevin Lang has written extensively about these issues. - - > >Could you enlighten us?
Honestly no. I've tried to find Kevin's 1993 paper on this and to reproduce his arguments, both to no avail. He has a neat little system that makes sense of the standard human capital wage equation and allows one to make simple sense of both discount rate and ability bias, but I can't remember how it works. Never paid too much attention to it because I strongly suspect that 1) people have almost no idea how much it will be worth for them to continue in school, 2) most people's decisions about schooling have to do with how much they like it vs. how much they like whatever the alternative is (and are therefore fairly short sighted), 3) 2) is heavily influenced by whether mom and dad are willing to pay for you to go to school (or someone else is), and 4) whether mom and dad are willing to pay depends on their own views about the return to education and their bequest motive and has nothing to do with any discount rate. - - Bill Dickens William T. Dickens The Brookings Institution 1775 Massachusetts Avenue, NW Washington, DC 20036 Phone: (202) 797-6113 FAX: (202) 797-6181 E-MAIL: [EMAIL PROTECTED] AOL IM: wtdickens
