Eliminating Ability Bias Analysis Assignment Paper

Eliminating Ability Bias Analysis Assignment Paper

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Eliminating Ability Bias Analysis Assignment Paper

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Two approaches to eliminating ability bias in estimates of the rate of return include 1) within twin comparisons of schooling and earnings and 2) making use of variation in years of education that results from compulsory schooling laws that generate differences across individuals in their years of education (especially for high school dropouts).

Briefly describe why these approaches might successfully produce an estimate that is free from ability bias.

In the paper by Eckenfelder and Rouse, the authors seem to think that these approaches suggest that ability bias is not a big problem in “standard” estimates based on cross-sectional information on individuals’ wages and schooling. Why do they reach this conclusion?

Can you think of any reasons that these approaches might not get rid of ability bias?

Economics Discussion

Discussion 6: Keynesian vs. Neoclassical Economics

11 unread replies.11 reply.

Respond to the following prompts in a post with a minimum of 100 words, then comment on at least ONE other posts.

Thinking back to the business cycle discussion, how would Keynesian economists explain the performance of the economy during the last few years? What has happened to aggregate demand?

Next, how would neoclassical economists explain the performance of the economy during the last few years? What has happened to aggregate supply?

Eliminating Ability Bias Analysis Assignment Paper

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