Further estimates of the economic return to schooling from a new sample of twins

Research output: Contribution to journalArticle

59 Scopus citations

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 languageEnglish (US)
Pages (from-to)149-157
Number of pages9
JournalEconomics of Education Review
Volume18
Issue number2
StatePublished - Apr 1 1999

All Science Journal Classification (ASJC) codes

  • Education
  • Economics and Econometrics

Keywords

  • Measurement error
  • Returns to schooling
  • Selection bias
  • Twins

Fingerprint Dive into the research topics of 'Further estimates of the economic return to schooling from a new sample of twins'. Together they form a unique fingerprint.

Cite this