Measure the Rate of Return to Education Based on Endogenous Education Variables

Affected by the interaction of education attainment, working experience and income, there are some limits in explanatory variables such as educational attainment of Mincer earning equation, which lead to some deviations in the estimation of the rate of return to education. By referring to research methods of Card and other scholars, and keeping education attainments as endogenous variables in Mincer earning equation, the impacts of educational attainment on income are measured. Empirical research results show that after taking into consideration the endogenous variables of education attainment, the rate of return to education attainment is increased substantially.