Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268346 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
I4R Discussion Paper Series No. 15
Publisher: 
Institute for Replication (I4R), s.l.
Abstract: 
Duflo (2001) exploits a 1970s schooling expansion in Indonesia to estimate the returns to schooling. Under the study's difference-in-differences (DID) design, two patterns in the data-shallower pay scales for younger workers and negative selection in treatment-can violate the parallel trends assumption and upward-bias results. In response, I follow up later, test for trend breaks timed to the intervention, and perform changes-in-changes (CIC). I also correct data errors, cluster variance estimates, incorporate survey weights to correct for en-dogenous sampling, and test for (and detect) instrument weakness. Weak identification-robust inference yields imprecise, positive estimates. CIC estimates tilt slightly negative.
Subjects: 
education
wages
reanalysis
JEL: 
I2
J31
O15
Document Type: 
Working Paper

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