Replication data for: Split-Sample Instrumental Variables Estimates of the Return to Schooling

We propose a split-sample instrumental variables (SSIV) estimator that is not biased toward OLS. SSIV uses one-half of a sample to estimate parameters of the first-stage equation.

Estimated first-stage parameters are then used to construct fitted values and second-stage parameter estimates in the other half sample. SSIV is biased toward 0, but this bias can be corrected. The splt-sample estimators confirm and reinforce some previous findings on the returns to schooling but fail to confirm others.