Working Paper No. 762

Comment on Education Returns of Wage Earners and Self-employed Workers

Published: August 27, 2008Pages: 6Keywords: Education; Entrepreneurship; Human capital; EGIV estimatorJEL-codes: C23; I21; J31

Comment on Education Returns of Wage Earners and Self-employed Workers Henrik Jordahl, Panu Poutvaara and Juha Tuomala


In a recent paper, García-Mainar and Montuenga-Gómez (2005) apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners and the self-employed in Portugal and in Spain. Our examination reveals several problems which relate to the validity and documentation of the instrumental variables, as well as the robustness of the results.





Henrik Jordahl

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