TY - JOUR
T1 - Income, schooling, and ability
T2 - Evidence from a new sample of identical twins
AU - Ashenfelter, Orley
AU - Rouse, Cecilia
PY - 1998/2
Y1 - 1998/2
N2 - We develop a model of optimal schooling investments and estimate it using new data on approximately 700 identical twins. We estimate an average return to schooling of 9 percent for identical twins, but estimated returns appear to be slightly higher for less able individuals. Simple cross-section estimates are marginally upward biased. These empirical results imply that abler individuals attain more schooling because they face lower marginal costs of schooling, not because of higher marginal benefits.
AB - We develop a model of optimal schooling investments and estimate it using new data on approximately 700 identical twins. We estimate an average return to schooling of 9 percent for identical twins, but estimated returns appear to be slightly higher for less able individuals. Simple cross-section estimates are marginally upward biased. These empirical results imply that abler individuals attain more schooling because they face lower marginal costs of schooling, not because of higher marginal benefits.
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U2 - 10.1162/003355398555577
DO - 10.1162/003355398555577
M3 - Article
AN - SCOPUS:0039758339
SN - 0033-5533
VL - 113
SP - 252
EP - 284
JO - Quarterly Journal of Economics
JF - Quarterly Journal of Economics
IS - 1
ER -