PT - JOURNAL ARTICLE AU - Roger Klein AU - Francis Vella TI - Estimating the Return to Endogenous Schooling Decisions via Conditional Second Moments AID - 10.3368/jhr.44.4.1047 DP - 2009 Oct 02 TA - Journal of Human Resources PG - 1047--1065 VI - 44 IP - 4 4099 - http://jhr.uwpress.org/content/44/4/1047.short 4100 - http://jhr.uwpress.org/content/44/4/1047.full SO - J Hum Resour2009 Oct 02; 44 AB - This paper employs conditional second moments to identify the impact of education in wage regressions where education is treated as endogenous. This approach avoids the use of instrumental variables in a setting where instruments are frequently not available. We employ this methodology to estimate the returns to schooling for a sample of Australian workers. We find that accounting for the endogeneity of education in this manner increases the estimated return to education from 6 percent to 10 percent.