Estimating the bias due to measurement error in the economic returns to schooling: evidence from the 1990 February Current Population Survey

We use the February 1990 CPS to construct a measurement error corrected estimate of the return to schooling. Our model yields a bias that ranges from 11 to 15 percent. Removing the bias raises the return from 8 to 9 percent. Both estimates are at the bottom of the range found in the literature.