The Economics of Education, 2nd Edition

Chapter 1

Empirical methods in the economics of education

Guido Schwerdt ^a , and Ludger Woessmann ^{b       a} University of Konstanz, Germany      ^b University of Munich, and Ifo Institute, CESifo and IZA, Munich, Germany

Abstract

Empirical research in the economics of education often addresses causal questions. Does an educational policy or practice cause students' test scores to improve? Does more schooling lead to higher earnings? This article surveys the methods that economists have increasingly used over the past two decades to distinguish accidental association from causation. The methods include research designs that exploit explicit randomization as well as quasi-experimental identification strategies based on observational data. ...