Further estimates of the economic return to schooling from a new sample of twins
Economics of Education Review Volume 18, Number 2 ISSN 0272-7757 Publisher: Elsevier Ltd
In a recent, and widely cited, paper, 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 & 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% 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 & 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. ["JEL": J24, I21]
Rouse, C.E. Further estimates of the economic return to schooling from a new sample of twins. Economics of Education Review, 18(2), 149-157. Elsevier Ltd.