Abstract
In a recent, and widely cited, paper, use a new sample of identical twins to investigate the contribution of genetic ability to the observed cross-sectional return to schooling. This paper re-examines Ashenfelter & Krueger's estimates using three additional years of the same twins survey. I find that the return to schooling among identical twins is about 10% per year of schooling completed. Most importantly, unlike the results reported in Ashenfelter and Krueger, I find that the within-twin regression estimate of the effect of schooling on the log wage is smaller than the cross-sectional estimate, implying a small upward bias in the cross-sectional estimate. Ashenfelter & Krueger's measurement error corrected estimates are insignificantly different from those presented here, however. Finally, there is evidence of an important individual-specific component to the measurement error in schooling reports. [JEL: J24, I21].
Original language | English (US) |
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Pages (from-to) | 149-157 |
Number of pages | 9 |
Journal | Economics of Education Review |
Volume | 18 |
Issue number | 2 |
State | Published - Apr 1 1999 |
All Science Journal Classification (ASJC) codes
- Education
- Economics and Econometrics
Keywords
- Measurement error
- Returns to schooling
- Selection bias
- Twins