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Measurement Error in Schooling: Evidence from Samples of Siblings and Identical Twins

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  • Light Audrey

    () (Ohio State University)

  • Flores-Lagunes Alfonso

    () (University of Arizona)

Abstract

The value of sibling data for identifying the causal effect of schooling on wages hinges on our ability to eliminate biases due to the mismeasurement of schooling. Analysts typically assume errors in schooling reports are "classical." In this study, we use generalized method of moments to estimate the parameters of a range of measurement error models, including forms of both classical and mean-reverting error models; we estimate the models using a sample of identical twins and a sample of non-twin siblings. The results of likelihood ratio-type tests reveal that variants of classical measurement error models fit both datasets about as well as more flexible models.

Suggested Citation

  • Light Audrey & Flores-Lagunes Alfonso, 2006. "Measurement Error in Schooling: Evidence from Samples of Siblings and Identical Twins," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-35, May.
  • Handle: RePEc:bpj:bejeap:v:contributions.5:y:2006:i:1:n:14
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    Cited by:

    1. Paul Bingley & Kaare Christensen & Ian Walker, 2007. "The Returns to Observable and Unobservable Skills over time: Evidence from a Panel of the Population of Danish Twins," Working Papers 200723, Geary Institute, University College Dublin.
    2. Pronzato, Chiara, 2008. "Why educated mothers don't make educated children? A statistical study in the intergenerational transmission of schooling," ISER Working Paper Series 2008-11, Institute for Social and Economic Research.
    3. Rob Pryce & Ian Walker & Rhys Wheeler, 2017. "How much of a problem is problem gambling?," Working Papers 167235280, Lancaster University Management School, Economics Department.
    4. Chiara Pronzato, 2012. "An examination of paternal and maternal intergenerational transmission of schooling," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 591-608, January.
    5. Alfonso Flores-Lagunes & Audrey Light, 2010. "Interpreting Degree Effects in the Returns to Education," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).

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