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The Effect of Schooling on Earnings: Evidence on the role of family background from a large sample of Norwegian twins

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  • Oddbjørn Raaum
  • Tom Erik Aabø

Abstract

A large representative sample of Norwegian twins is used to estimate the causal effect of schooling on earnings in Norway, separately for men and women. The within-twin-pair estimates reveal that standard cross section (OLS) estimates of the schooling effect on male hourly earnings are biased upwards. For women, no such bias is found. However, family background appears to affect both educational attainment and post-schooling labour supply of women, implying that the standard estimate of the effect of schooling on female annual earnings is upward biased.

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Bibliographic Info

Article provided by Nordic Journal of Political Economy in its journal Nordic Journal of Political Economy.

Volume (Year): 26 (2000)
Issue (Month): ()
Pages: 95-113

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Handle: RePEc:noj:journl:v:26:y:2000:p:95-113

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  1. Orley Ashenfelter & Cecilia Rouse, 1999. "Schooling, Intelligence, and Income in America: Cracks in the Bell Curve," NBER Working Papers 6902, National Bureau of Economic Research, Inc.
  2. Miller, Paul W & Mulvey, Charles & Martin, Nick, 1995. "What Do Twins Studies Reveal about the Economic Returns to Education? A Comparison of Australian and U.S. Findings," American Economic Review, American Economic Association, vol. 85(3), pages 586-99, June.
  3. James J. Heckman & Lance Lochner & Christopher Taber, 1999. "General Equilibrium Cost Benefit Analysis of Education and Tax Policies," NBER Working Papers 6881, National Bureau of Economic Research, Inc.
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Cited by:
  1. Aakvik, Arild & Salvanes, Kjell G & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," CEPR Discussion Papers 4088, C.E.P.R. Discussion Papers.

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