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


  • Cecilia Rouse

    (Princeton University)


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 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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    References listed on IDEAS

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    6. David Card & Alan B. Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 31-50, Fall.
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    13. David Card & Alan Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Working Papers 745, Princeton University, Department of Economics, Industrial Relations Section..
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    Cited by:

    1. Antonio Ciccone & Giovanni Peri, "undated". "Human Capital and Externalities in Cities," Working Papers 172, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.

    More about this item


    sample; identical twins; schooling; human capital; genetic ability;

    JEL classification:

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


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