In this paper I explore the relationship between ability and log waves using flexible estimation techniques. I find evidence of nonlinearities in these relationships that vary across levels of schooling, and argue that ability-sorting into higher education creates problems for accurately identifying the return to schooling over the entire ability support. Over an ability support that is "common" to those with and without a college education, I find that the college log wage premium is increasing for the more able, and this premium grew during the period 1984-1994 for individuals at all points in the ability distribution. The growth of this wage premium over time also appears to have followed a "smoother" linear path for high-ability individuals than individuals of lower ability.
展开▼
