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Estimates of the return to schooling in Sweden from a large sample of twins
Dalarna University, School of Technology and Business Studies, Economics.ORCID iD: 0000-0002-4722-8788
1999 (English)In: Labour Economics, ISSN 0927-5371, Vol. 6, no 4, 471-489 p.Article in journal (Refereed) Published
Abstract [en]

A large sample of twins was used to examine whether conventional estimates of the return to schooling in Sweden are biased because ability is omitted from the earnings-schooling relationship. Ignoring measurement error, the results indicate that omitting ability from the earnings-schooling relationship leads to estimates that are positively biased. However, reasonable estimates of the measurement-error-adjusted returns are both above and below the unadjusted estimates, showing that the results depend crucially on a parameter not known at this time. However, an estimate of the reliability ratio was obtained using two measures on educational attainment. With this estimate of the reliability ratio the measurement-error-adjusted estimate of the return to schooling in the sample of identical twins indicates that there is at most a slight ability bias in the conventional estimates of the return to schooling. The fundamental assumption of this kind of study is that within-pair differences in educational attainment are randomly determined. This assumption was also tested, but no strong evidence to reject it was found.

Place, publisher, year, edition, pages
Elsevier , 1999. Vol. 6, no 4, 471-489 p.
Keyword [en]
Schooling, Reliability Ratio, Twins
Identifiers
URN: urn:nbn:se:du-4417OAI: oai:dalea.du.se:4417DiVA: diva2:520134
Available from: 2010-01-11 Created: 2010-01-11 Last updated: 2015-06-23Bibliographically approved

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