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Comments from the Chair: endogeneity and policy recommendations

Posted: Mon Jun 11, 2018 6:22 am
by John Cockburn
  • I assume endogeneity concerns are motivated, at least in part, by unobservable characteristics of youth (motivation, inherent talents, etc.) that drive (positively) both employment during schooling and successful transition to work. This would lead to an upward bias in the estimation of the impacts of working while at school on successful transition, such that the controlled estimate should be lower, but you find that it is higher. How do you interpret this? This is similar to the issues faced in the returns to schooling literature, which could provide ideas on ways to handle this.
  • You recommend encouraging work during schooling. Are there possible pitfalls? Could this reduce school attendance/performance, exhaustion of children, etc.? Can you evaluate some of these? There is quite a literature on the impacts of child work on school performance, including a previous PEP study: