- , “High Unemployment Yet Few Small Firms: The Role of Centralized Bargaining in South Africa,†American Economic Journal: Applied Economics, July 2012, 4 (3), 138–166.
Paper not yet in RePEc: Add citation now
- , “Vocational-technical schooling and occupational matching in Thailand: differences between men and women,†Asia Paciï¬c Journal of Education, June 2008, 28, 189–205.
Paper not yet in RePEc: Add citation now
, Pablo Ibarrarn, Ferdinando Regalia, Rosas-Shady, and Yuri Soares, “The Labor Market Impacts of Youth Training in the Dominican Republic,†Journal of Labor Economics, April 2011, 29 (2).
- Altonji et al. (2005) formalize this argument. The interpretation of this ratio becomes somewhat clearer if I further assume that δv = θv = θX = 0, in which case we have: δa = cov(Sa, u) var(Sa) θa = cov(Sa, ˜u) var(Sa) plim ˆβa,NC − ˆβa,C = γ cov(Sa, u − ˜u) var(Sa) = γ cov(Sa, XβX) var(Sa) Again setting βa = 0 under the null hypothesis yields: plim ˆβa,C ˆβa,NC − ˆβa,C =
Paper not yet in RePEc: Add citation now
Altonji, Joseph G., Todd E. Elder, and Christopher R. Taber, “Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools,†Journal of Political Economy, February 2005, 113 (1), 151–184.
- Arum, Richard and Yossi Shavit, “Secondary Vocational Education and the Transition from School to Work,†Sociology of Education, July 1995, 68 (3).
Paper not yet in RePEc: Add citation now
Attanasio, Orazio, Adriana Kugler, and Costas Meghir, “Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial,†American Economic Journal: Applied Economics, July 2011, 3 (3), 188–220.
Banerjee, Abhijit, Sebastian Galiani, James A. Levinsohn, Zoe McLaren, and Ingrid Woolard, “A Symposium on Fostering Growth in South Africa: Why Has Unemployment Risen in the New South Africa?,†Economics of Transition, 2008, 16 (4), 715–40.
- Becker, Gary S., Human Capital a Theoretical and Empirical Analysis, With Special Reference to Education, Columbia University Press, 1967.
Paper not yet in RePEc: Add citation now
Bellows, John and Edward Miguel, “War and Local Collective Action in Sierra Leone,†Journal of Public Economics, December 2009, 93 (11-12), 1144–1157.
Bennell, Paul, “General versus Vocational Secondary Education in Developing Countries: A Review of the Rates of Return Evidence,†Journal of Development Studies, December 1996, 33 (2), 230–247.
- Bunting, Ian and Nico Cloete, “Institutional Types in Higher Education in South Africa,†February 2010.
Paper not yet in RePEc: Add citation now
Card, David, “The Causal Effect of Education on Earnings,†Handbook of labor economics. Volume 3A. 1999, 1999, pp. 1801–63.
Case, Anne, “Does Money Protect Health Status? Evidence from South African Pensions,†Perspectives on the economics of aging. 2004, 2004, pp. 287–305.
- cov(Sa, ˜u) cov(Sa, XβX) (17) The ratio on the right-hand side represents how strong the relationship between the residual unobservable ˜u and Sa must be relative to that of the controls X to explain a non-zero estimate of ˆβa when βa = 0. A large ratio suggests that omitted variable bias is unlikely to explain away the entire effect of academic schooling on y. Altonji et al. (2005) interpret ratios greater than 3 as large, and ratios greater than 1 as suggestive of non-zero treatment effects in the presence of possible selection on unobservables. A similar argument can be made for the corresponding expression for the vocational schooling coefficient βv.
Paper not yet in RePEc: Add citation now
- Duflo, Esther, “Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa,†World Bank Economic Review, 2003, 17 (1), 1–25.
Paper not yet in RePEc: Add citation now
Edmonds, Eric V, “Child Labor and Schooling Responses to Anticipated Income in South Africa,†Journal of Development Economics, December 2006, 81 (2), 386–414.
El-Hamidi, Fatma, “General or Vocational Schooling? Evidence on School Choice, Returns, and ’Sheepskin’ Effects from Egypt 1998,†Journal of Policy Reform, June 2006, 9 (2), 157–176.
- Fiske, Edward B. and Helen F. Ladd, Elusive Equity: Education Reform in Post Apartheid South Africa, Brookings Institution Press, July 2004.
Paper not yet in RePEc: Add citation now
- Following Bellows and Miguel’s (2009) application of Altonji et al.’s (2005) methodology, taking the ratio of (16) over the difference in the probability limits (12)-(16) under the null hypothesis βa = 0 yields: plim ˆβa,C ˆβa,NC − ˆβa,C = θa δa − θa The numerator on the right-hand side is the partial correlation between academic schooling Sa and ˜u, the remaining selection term after including the controls X. The denominator is this term subtracted from the partial correlation between academic schooling Sa and u, the selection term that includes the controls X. If the denominator is small relative to the numerator and the controls X are representative of all possible controls,46 then the selection term remaining after controls are included (˜u) is not likely to be an important source of inconsistency for βa.
Paper not yet in RePEc: Add citation now
Hanushek, Eric A., Ludger Woessmann, and Lei Zhang, “General Education, Vocational Education, and Labor-Market Outcomes over the Life-Cycle,†National Bureau of Economic Research Working Paper Series, 2011, No. 17504.
- Hawley, Joshua D., “Comparing the payoff to vocational and academic credentials in Thailand over time,†International Journal of Educational Development, November 2003, 23 (6), 607–625.
Paper not yet in RePEc: Add citation now
Kahyarara, Godius and Francis Teal, “The Returns to Vocational Training and Academic Education: Evidence from Tanzania,†World Development, November 2008, 36 (11), 2223–2242.
- Labor force participation variables (i.e., work and search) and wages are conditional on non42 The Cape Area Panel Study Waves 1-2-3 were collected between 2002 and 2005 by the University of Cape Town and the University of Michigan, with funding provided by the US National Institute for Child Health and Human Development and the Andrew W. Mellon Foundation. Wave 4 was collected in 2006 by the University of Cape Town, University of Michigan and Princeton University. Major funding for Wave 4 was provided by the National Institute on Aging through a grant to Princeton University, in addition to funding provided by NICHD through the University of Michigan. enrollment at a given age, where reports of enrollment supersede reports of labor market participation.
Paper not yet in RePEc: Add citation now
- Lam, D., Cally Ardington, Nicola Branson, Anne Case, Murray Leibbrandt, Alicia Menendez, Jeremy Seekings, and Meredith Sparks, “The Cape Area Panel Study: A Very Short Introduction to the Integrated Waves 1-2-3-4 Data,†October 2008.
Paper not yet in RePEc: Add citation now
Lam, David, Cally Ardington, and Murray Leibbrandt, “Schooling as a lottery: Racial differences in school advancement in urban South Africa,†Journal of Development Economics, July 2011, 95 (2), 121–136.
Magruder, Jeremy R., “Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa,†American Economic Journal: Applied Economics, January 2010, 2 (1), 62–85.
Maitra, Pushkar and Subha Mani, “Learning and Earning: Evidence from a Randomized Evaluation in India,†2012.
Mincer, Jacob, Schooling, Experience, and Earnings, 1st ed., Natonal Bureau of Economic Research, May 1974.
- Needham, Seamus and Joy Papier, “Practical matters: What young people think about vocational education in South Africa,†Technical Report, City & Guilds Centre for Skills Development, London June 2011.
Paper not yet in RePEc: Add citation now
Newhouse, David and Daniel Suryadarma, “The Value of Vocational Education: High School Type and Labor Market Outcomes in Indonesia,†World Bank Economic Review, 2011, 25 (2), 296–322.
- Nkosi, Bongani, “Vocational educational not an ’option for losers’,†The M&G Online, November 2012.
Paper not yet in RePEc: Add citation now
- Oosterbeek, Hessel and Dinand Webbink, “Wage effects of an extra year of basic vocational education,†Economics of Education Review, August 2007, 26 (4), 408–419.
Paper not yet in RePEc: Add citation now
- Oxford Business Group, “South Africa: Raising higher education,†http://www.oxfordbusinessgroup.com/economic updates/south-africa-raising-highereducation February 2012.
Paper not yet in RePEc: Add citation now
Pugatch, Todd, “Bumpy Rides: School to Work Transitions in South Africa,†Unpublished paper, University of Michigan, 2011.
Roy, A. D., “Some Thoughts on the Distribution of Earnings,†Oxford Economic Papers, June 1951, 3 (2), 135–146. ArticleType: research-article / Full publication date: Jun., 1951 / Copyright 1951 Oxford University Press.
- Souza, P., “Moral Hazard in the Family,†Unpublished paper, Yale University, 2010.
Paper not yet in RePEc: Add citation now
- The assumptions used to arrive at (17) are admittedly restrictive. In particular, the assumptions that δv = θv = 0 are potentially problematic, as they require that vocational schooling Sv is unrelated to the unobservables u and Ëœu that determine selection into academic schooling. (The assumption θX = 0 is not problematic, as it follows from the deï¬nition of a linear projection.) Nonetheless, these assumptions are required to arrive at the familiar omitted variables bias formula when there are more than two regressors, and are therefore often invoked (Wooldridge 2001, p. 62).
Paper not yet in RePEc: Add citation now
- This derivation of omitted variable bias follows Wooldridge (2001) closely. u = δaSa + δvSv + r (10) Substituting (10) into (9) yields: y = (βa + γδa)Sa + (βv + γδv)Sv + γr + (11) Written in this form, the familiar omitted variables bias formula for ˆβa follows: plim ˆβa,NC = βa + γδa (12) where the subscript NC denotes “no controls.†Now suppose there is a set of controls X that is related to the selection term u in the following way: u = XβX + ˜u The availability of these controls allows me to rewrite the model as: y = βaSa + βvSv + γ(XβX + ˜u) + (13) Analogously to (10), write the linear projection of the omitted variable ˜u on the observables as: ˜u = θaSa + θvSv + XθX + ν (14) Substituting (14) into (13) yields the counterparts to (11) and (12): y = (βa + γθa)Sa + (βv + γθv)Sv + X(βX + γθX) + γν + (15) plim ˆβa,C = βa + γθa (16) where C refers to the model with controls.
Paper not yet in RePEc: Add citation now
van der Meulen Rodgers, Yana, Joseph E. Zveglich, and Laura Wherry, “Gender Differences in Vocational School Training and Earnings Premiums in Taiwan,†Feminist Economics, October 2006, 12 (4), 527–560.