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Returns to Education: The Causal Effects of Education on Earnings, Health

James J. Heckman, John Eric Humphries, and Greg Veramendi
Journal PaperJournal of Political Economy, forthcoming.

Abstract

This paper estimates returns to education using a dynamic model of educational choice that synthesizes approaches in the structural dynamic discrete choice literature with approaches used in the reduced form treatment effect literature. It is an empirically robust middle ground between the two approaches which estimates economically interpretable and policy-relevant dynamic treatment effects that account for heterogeneity in cognitive and non-cognitive skills and the continuation values of educational choices. Graduating college is not a wise choice for all. Ability bias is a major component of observed educational differentials. For some, there are substantial causal effects of education at all stages of schooling.

Dynamic Treatment Effects

James J. Heckman, John Eric Humphries, and Greg Veramendi
Journal Paper Journal of Econometrics, Volume 191, Issue 2, April 2016, Pages 276-292

Abstract

This paper develops robust models for estimating and interpreting treatment effects arising from both ordered and unordered multi-stage decision problems. Identification is secured through instrumental variables and/or conditional independence (matching) assumptions. We decompose treatment effects into direct effects and continuation values associated with moving to the next stage of a decision problem. Using our framework, we decompose the IV estimator, showing that IV generally does not estimate economically interpretable or policy-relevant parameters in prototypical dynamic discrete choice models, unless policy variables are instruments. Continuation values are an empirically important component of estimated total treatment effects of education. We use our analysis to estimate the components of what LATE estimates in a dynamic discrete choice model.

The Myth of Achievement Tests, The GED and the Role of Character in American Life

James J. Heckman, John Eric Humphries, and Tim Kautz (editors)
Book University of Chicago Press | January 9, 2014 | ISBN-10: 022610009X
image Achievement tests play an important role in modern societies. They are used to evaluate schools, to assign students to tracks within schools, and to identify weaknesses in student knowledge. The GED is an achievement test used to grant the status of high school graduate to anyone who passes it. GED recipients currently account for 12 percent of all high school credentials issued each year in the United States. But do achievement tests predict success in life?

The Myth of Achievement Tests shows that achievement tests like the GED fail to measure important life skills. James J. Heckman, John Eric Humphries, Tim Kautz, and a group of scholars offer an in-depth exploration of how the GED came to be used throughout the United States and why our reliance on it is dangerous. Drawing on decades of research, the authors show that, while GED recipients score as well on achievement tests as high school graduates who do not enroll in college, high school graduates vastly outperform GED recipients in terms of their earnings, employment opportunities, educational attainment, and health. The authors show that the differences in success between GED recipients and high school graduates are driven by character skills. Achievement tests like the GED do not adequately capture character skills like conscientiousness, perseverance, sociability, and curiosity. These skills are important in predicting a variety of life outcomes. They can be measured, and they can be taught.

Using the GED as a case study, the authors explore what achievement tests miss and show the dangers of an educational system based on them. They call for a return to an emphasis on character in our schools, our systems of accountability, and our national dialogue.

Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out

James J. Heckman, John Eric Humphries, Paul A. LaFontaine, and Pedro L. Rodriguez
Journal Paper Journal of Labor Economics, Volume 30, Issue 3, July 2012, Pages 495-520

Abstract

The option to obtain a General Educational Development (GED) certificate changes the incentives facing high school students. This article evaluates the effect of three different GED policy innovations on high school graduation rates. A 6-point decrease in the GED pass rate produced a 1.3-point decline in high school dropout rates. The introduction of a GED certification program in high schools in Oregon produced a 4% decrease in high school graduation rates. Introduction of GED certificates for civilians in California increased the dropout rate by 3 points. The GED program induces students to drop out of high school.

Identification Problems in Personality Psychology

Lex Borghans, Bart H. H. Golsteyn, James J. Heckman, John Eric Humphries, Paul A. LaFontaine, and Pedro L. Rodriguez
Journal Paper Personality and Individual Differences, Volume 51, Issue 3, August 2012, Pages 315-320

Abstract

This paper discusses and illustrates identification problems in personality psychology. The measures used by psychologists to infer traits are based on behaviors, broadly defined. These behaviors are produced from multiple traits interacting with incentives in situations. In general, measures are determined by these multiple traits and do not identify any particular trait unless incentives and other traits are controlled for. Using two data sets, we show, as an example, that substantial portions of the variance in achievement test scores and grades, which are often used as measures of cognition, are explained by personality variables.

What Do Grades and Achievement Tests Measure

Lex Borghans, Bart H. H. Golsteyn, James J. Heckman, John Eric Humphries
Journal PaperProceedings of the National Academy of Science, forthcoming.

Abstract

Intelligence quotient (IQ), grades, and scores on achievement tests are widely used as measures of cognition, but the correlations among them are far from perfect. This paper uses a variety of datasets to show that personality and IQ predict grades and scores on achievement tests. Personality is relatively more important in predicting grades than scores on achievement tests. IQ is relatively more important in predicting scores on achievement tests. Personality is generally more predictive than IQ on a variety of important life outcomes. Both grades and achievement tests are substantially better predictors of important life outcomes than IQ. The reason is that both capture personality traits that have independent predictive power beyond that of IQ.

The GED

James J. Heckman, John Eric Humphries, and Nicholas S. Mader
Handbook Chapter Elsevier: Handbook of Economics of Education, Volume 3, Issue 3, 2011, Pages 423-483

Abstract

The General Educational Development (GED) credential is issued on the basis of an eight hour subject-based test. The test claims to establish equivalence between dropouts and traditional high school graduates, opening the door to college and positions in the labor market. In 2008 alone, almost 500,000 dropouts passed the test, amounting to 12% of all high school credentials issued in that year. This chapter reviews the academic literature on the GED, which finds minimal value of the certificate in terms of labor market outcomes and that only a few individuals successfully use it as a path to obtain post-secondary credentials. Although the GED establishes cognitive equivalence on one measure of scholastic aptitude, recipients still face limited opportunity due to deficits in noncognitive skills such as persistence, motivation and reliability. The literature finds that the GED testing program distorts social statistics on high school completion rates, minority graduation gaps, and sources of wage growth. Recent work demonstrates that, through its availability and low cost, the GED also induces some students to drop out of school. The GED program is unique to the United States and Canada, but provides policy insight relevant to any nation's educational context.

Who are the GEDs?

James J. Heckman, John Eric Humphries, and Tim Kautz
Book Chapter University of Chicago Press | January 9, 2014 | ISBN-10: 022610009X

Chapter 4 in: The Myth of Achievement Tests, The GED and the Role of Character in American Life

The Economic and Social Benefits of GED Certification?

James J. Heckman, John Eric Humphries, and Tim Kautz
Book Chapter University of Chicago Press | January 9, 2014 | ISBN-10: 022610009X

Chapter 5 in: The Myth of Achievement Tests, The GED and the Role of Character in American Life

Growth in GED Testing

John Eric Humphries
Book Chapter University of Chicago Press | January 9, 2014 | ISBN-10: 022610009X

Chapter 3 in: The Myth of Achievement Tests, The GED and the Role of Character in American Life

The GED Testing Program Induces Students to Drop Out?

James J. Heckman, John Eric Humphries, Paul A. LaFontaine, and Pedro L. Rodriguez
Book Chapter University of Chicago Press | January 9, 2014 | ISBN-10: 022610009X

Chapter 7 in: The Myth of Achievement Tests, The GED and the Role of Character in American Life

What Should Be Done?

James J. Heckman, John Eric Humphries, and Tim Kautz
Book Chapter University of Chicago Press | January 9, 2014 | ISBN-10: 022610009X

Chapter 10 in: The Myth of Achievement Tests, The GED and the Role of Character in American Life

Design and Implementation of a Privacy Preserving Electronic Health Record Linkage Tool in Chicago

Abel N Kho, John P Cashy, Kathryn L Jackson, Adam R Pah, Satyender Goel, Jörn Boehnke, John Eric Humphries, Scott Duke Kominers, Bala N Hota, Shannon A Sims, Bradley A Malin, Dustin D French, Theresa L Walunas, David O Meltzer, Erin O Kaleba, Roderick C Jones, William L Galanter
Journal Paper Journal of the American Medical Informatics Association, Issue 22, Volumen 5, 2015, Pages 1072-1080.

Abstract

Objective: To design and implement a tool that creates a secure, privacy preserving linkage of electronic health record (EHR) data across multiple sites in a large metropolitan area in the United States (Chicago, IL), for use in clinical research.

Methods: The authors developed and distributed a software application that performs standardized data cleaning, preprocessing, and hashing of patient identifiers to remove all protected health information. The application creates seeded hash code combinations of patient identifiers using a Health Insurance Portability and Accountability Act compliant SHA-512 algorithm that minimizes re-identification risk. The authors subsequently linked individual records using a central honest broker with an algorithm that assigns weights to hash combinations in order to generate high specificity matches.

Results: The software application successfully linked and de-duplicated 7 million records across 6 institutions, resulting in a cohort of 5 million unique records. Using a manually reconciled set of 11 292 patients as a gold standard, the software achieved a sensitivity of 96% and a specificity of 100%, with a majority of the missed matches accounted for by patients with both a missing social security number and last name change. Using 3 disease examples, it is demonstrated that the software can reduce duplication of patient records across sites by as much as 28%.

Conclusions: Software that standardizes the assignment of a unique seeded hash identifier merged through an agreed upon third-party honest broker can enable large-scale secure linkage of EHR data for epidemiologic and public health research. The software algorithm can improve future epidemiologic research by providing more comprehensive data given that patients may make use of multiple healthcare systems.