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Double trouble : on the value of twins-based estimation of the return to schooling

Author: John Bound; Gary Solon; National Bureau of Economic Research.
Publisher: Cambridge, MA. : National Bureau of Economic Research, ©1998.
Series: Working paper series (National Bureau of Economic Research), working paper no. 6721.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Abstract: Several recent studies use the schooling and wage variation between monozygotic twins to estimate the return to schooling. In this paper, we summarize the results from this literature, and we examine the implications of endogenous determination of which twin goes to school longer and of measuring schooling with (possibly mean-reverting) error. Endogeneity of between-twins schooling variation is strongly  Read more...
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Additional Physical Format: Print version:
Bound, John.
Double trouble.
Cambridge, MA. : National Bureau of Economic Research, ©1998
(OCoLC)40297537
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: John Bound; Gary Solon; National Bureau of Economic Research.
OCLC Number: 70107927
Notes: "September 1998."
Also available via the Internet at http://www.nber.org/wwp.html.
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2011. MiAaHDL
Description: 1 online resource (31 pages).
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 6721.
Other Titles: On the value of twins-based estimation of the return to schooling
Responsibility: John Bound, Gary Solon.

Abstract:

Abstract: Several recent studies use the schooling and wage variation between monozygotic twins to estimate the return to schooling. In this paper, we summarize the results from this literature, and we examine the implications of endogenous determination of which twin goes to school longer and of measuring schooling with (possibly mean-reverting) error. Endogeneity of between-twins schooling variation is strongly suggested by the extensive (mostly non-economic) literature documenting that the between-twins difference in birth weight is correlated with the between-twins differences in both schooling and IQ. We conclude that twins-based estimation is vulnerable to the same sort of inconsistency that afflicts conventional cross-sectional estimation. We argue, however, that, if one starts with the presumption that endogenous schooling induces upward inconsistency in the estimated return to schooling, the new twins-based estimates may complement other approaches to tightening the upper bound on the return to schooling.

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