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IMPACT OF CHILD QUALITY ON EARNINGS: THE PRODUCTIVITY‐OF‐SCHOOLING HYPOTHESIS
Author(s) -
Ganderton PHILIP,
Griffin PETER
Publication year - 1993
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1993.tb00388.x
Subject(s) - earnings , productivity , affect (linguistics) , economics , demographic economics , rate of return , quality (philosophy) , labour economics , ethnic group , psychology , economic growth , sociology , finance , philosophy , communication , epistemology , anthropology
This paper investigates the relationship between average earnings, education (measured by years of schooling), and rates of return to education for major racial/ethnic groups in the United States. It considers the effect of including previously omitted “productivity‐of‐schooling” (also referred to here as “child quality”) variables. An upward‐sloping average education, rate‐of‐return‐to‐education profile exists for His‐panics, blacks, and whites. Productivity‐of‐schooling (i.e., child quality) measures– including family size, family composition, ability, and parental inputs–significantly affect earnings and rates of return to education. The results here are consistent with Chiswick (1988). Conditions within the family play a larger role in determining the value of education for minority males than for white males, a conclusion of obvious interest to policymakers.