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The Effects of School and Family Characteristics on the Return to Education

  • Joseph G. Altonji
  • Thomas A. Dunn

We measure the effects of parental education on the education profile of wages. The analysis uses sibling pairs from the Panel Study of Income Dynamics and the National Longitudinal Surveys of Labor Market Experience of Young Men and Young Women. We also use the variance across siblings in school characteristics to estimate the effects of school inputs on wages holding family background constant. We obtained mixed evidence on whether parental education raises the return to education. We find that teacher's salary, expenditures per pupil, and a composite index of school quality measures have a substantial positive effect on the wages of high school graduates.

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File URL: http://www.nber.org/papers/w5072.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5072.

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Date of creation: Mar 1995
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Publication status: Published as "The Demand For and Return to Education When Education Outcomes are Uncertain", Journal of Labor Economics, Vol. 11, no. 1 (1993): 48-83.
Handle: RePEc:nbr:nberwo:5072
Note: LS
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  1. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  2. Orley Ashenfelter & David J. Zimmerman, 1997. "Estimates Of The Returns To Schooling From Sibling Data: Fathers, Sons, And Brothers," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 1-9, February.
  3. David Card, 1994. "Earnings, Schooling, and Ability Revisited," Working Papers 710, Princeton University, Department of Economics, Industrial Relations Section..
  4. Charles R. Link & Edward C. Ratledge, 1975. "Social Returns to Quantity and Quality of Education: A Further Statement," Journal of Human Resources, University of Wisconsin Press, vol. 10(1), pages 78-89.
  5. Joseph G. Altonji, 1991. "The Demand for and Return to Education When Education Outcomes are Uncertain," NBER Working Papers 3714, National Bureau of Economic Research, Inc.
  6. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
  7. David Card & Alan Krueger, 1994. "The Economic Return to School Quality: A Partial Survey," Working Papers 713, Princeton University, Department of Economics, Industrial Relations Section..
  8. Alan Krueger & Orley Ashenfelter, 1992. "Estimates of the Economic Return to Schooling from a New Sample of Twins," NBER Working Papers 4143, National Bureau of Economic Research, Inc.
  9. Lang, Kevin, 1993. "Ability Bias, Discount Rate Bias and the Return to Education," MPRA Paper 24651, University Library of Munich, Germany.
  10. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, vol. 52(5), pages 1199-1218, September.
  11. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October.
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