In this paper we make a systematic presentation of returns to education in Austria for the period 1981-1997. We use consistent cross-selections from the Mikrozensus and find falling returns over time. These falling returns are not caused by changes in the sample design and reduced willingness to...

Many recent studies that were based on "exogenous" sources of variation in education outcomes' IV estimates of returns to schooling were substantially higher than the corresponding OLS estimates. Card (1995a) suggests that these results are explained by the existence of heterogeneity in...

Individual time preference determines schooling enrollment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Accordingly, we use smoking at age 16 as an instrument for schooling in order to cope with ability bias in a returns to education...