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Differences in the response heterogeneity of educational attainment and achievement to the same instrumental variable
Authors:Wen Fan  Xiaobo He
Affiliation:1. School of Public Administration, Nanjing University of Finance and Economics, Nanjing, P. R. China;2. School of International Economics and Trade, Shanghai Lixin University of Accounting and Finance, Shanghai, P. R. China
Abstract:The typical econometric application of instrumental variable (IV) estimates imposes a constant-treatment-effect model for all individuals. Using regression discontinuity design, we find while older school starters tend to have lower educational attainment, they are more likely to achieve qualifications at different educational levels for the UK. This finding joins the discussion on instruments for educational outcomes by offering some evidence that school starting age can affect treated individuals diversely. We highlight that identifying the treatment effect with methods similar to IV estimates should be concerned in the context of heterogeneous treatments; that is, the instrument in question has an effect on treatment for particular subpopulations only, and those subpopulations may not be the same for different treatments.
Keywords:Instrumental variable  heterogeneity  educational attainment  educational achievement
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