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Further Estimates of the Economic Return to Schooling from a New Sample of Twins

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  • Cecilia E. Rouse

    (Princeton University)

Abstract

In a recent, and widely cited, paper, Ashenfelter and Krueger (1994) use a new sample of identical twins to investigate the contribution of genetic ability to the observed cross-sectional return to schooling. This paper re-examines Ashenfelter and Krueger's estimates using three additional years of the same twins survey. I find that the return to schooling among identical twins is about 10 percent per year of schooling completed. Most importantly, unlike the results reported in Ashenfelter and Krueger, I find that the within- twin regression estimate of the effect of schooling on the log wage is smaller than the cross-sectional estimate, implying a small upward bias in the cross-sectional estimate. Ashenfelter and Krueger's measurement error corrected estimates are insignificantly different from those presented here, however. Finally, there is evidence of an important individual-specific component to the measurement error in schooling reports.

Suggested Citation

  • Cecilia E. Rouse, 1997. "Further Estimates of the Economic Return to Schooling from a New Sample of Twins," Working Papers 767, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:388
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    Citations

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    Cited by:

    1. Patrinos, Harry A. & Sakellariou, Chris, 2011. "Quality of Schooling, Returns to Schooling and the 1981 Vouchers Reform in Chile," World Development, Elsevier, vol. 39(12), pages 2245-2256.
    2. Fasih, Tazeen & Patrinos, Harry Anthony & Sakellariou, Chris, 2013. "Functional literacy, heterogeneity and the returns to schooling : multi-country evidence," Policy Research Working Paper Series 6697, The World Bank.
    3. Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001. "Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data," Empirical Economics, Springer, vol. 26(1), pages 7-40.
    4. Antonio Ciccone & Giovanni Peri, "undated". "Human Capital and Externalities in Cities," Working Papers 172, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    5. Lundborg, Petter & Nilsson, Anton & Rooth, Dan-Olof, 2011. "Does Early Life Health Predict Schooling Within Twin Pairs?," IZA Discussion Papers 5803, Institute of Labor Economics (IZA).
    6. Nathalie Chusseau & Joël Hellier & B. Ben-Halima, 2013. "Education, Intergenerational Mobility and Inequality," Palgrave Macmillan Books, in: Joël Hellier & Nathalie Chusseau (ed.), Growing Income Inequalities, chapter 8, pages 227-273, Palgrave Macmillan.

    More about this item

    Keywords

    sample; identical twins; schooling; human capital; genetic ability;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F00 - International Economics - - General - - - General

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