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Twin Data vs. Longitudinal Data to Control for Unobserved Variables in Earnings Functions – Which Are the Differences?

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  • Gunnar Isacsson

Abstract

This paper compares two different approaches empirically to control for unobserved characteristics when estimating the effect of marriage on male and female earnings: the longitudinal and the twins approach. The estimates were obtained by exploiting the longitudinal dimension of a large sample of Swedish twins, so that longitudinal and twin‐based estimates could be obtained in the same sample. The two approaches lead to different conclusions both regarding the role of unobserved characteristics in the cross‐sectional earnings–marriage relationship and the effect of marriage on earnings. The paper investigates three potential explanations of this difference.

Suggested Citation

  • Gunnar Isacsson, 2007. "Twin Data vs. Longitudinal Data to Control for Unobserved Variables in Earnings Functions – Which Are the Differences?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(3), pages 339-362, June.
  • Handle: RePEc:bla:obuest:v:69:y:2007:i:3:p:339-362
    DOI: 10.1111/j.1468-0084.2006.00197.x
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    Cited by:

    1. Esfandiar Maasoumi & Daniel L. Millimet & Dipanwita Sarkar, 2009. "Who Benefits from Marriage?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 1-33, February.
    2. William M. Rodgers & Leslie S. Stratton, 2010. "Male Marital Wage Differentials: Training, Personal Characteristics, And Fixed Effects," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 722-742, July.
    3. Hyytinen, Ari & Ilmakunnas, Pekka & Toivanen, Otto, 2013. "The return-to-entrepreneurship puzzle," Labour Economics, Elsevier, vol. 20(C), pages 57-67.
    4. Petri Böckerman & Pekka Ilmakunnas & Jari Vainiomäki, 2018. "Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage," Manchester School, University of Manchester, vol. 86(2), pages 155-177, March.

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