the co - twin methodology and returns to schooling - testing a critical assumption örjan sandewall david cesarini magnus johannesson
نویسندگان
چکیده
Twins-based estimates of the return to schooling feature prominently in the labor literature. Their validity hinges critically on the assumption that within-pair variation in schooling is explained by factors which are unrelated to wage earning ability. This paper develops a framework for testing this assumption, and …nds, using a unique dataset of monozygotic twins, strong evidence against it. Di¤erences in adolescent IQ test scores predict di¤erences in educational attainment and including IQ in the wage equation causes within-pair point estimates for the returns to schooling to decline signi…cantly. Our results thus cast doubt on the validity of twins-based estimates.
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