The Co-twin Methodology and Returns to Schooling: Testing a Critical Assumption

Arbeitspapier

Twins-based estimates of the return to schooling feature prominently in the labor economics literature. The validity of such estimates 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 finds, using a unique dataset of monozygotic twins, strong evidence against it. Di¤erences in adolescent IQ test scores predict within-pair variation in educational attainment, and including IQ in the wage equation causes within-pair point estimates for the returns to schooling to decline significantly. Our results thus cast doubt on the validity of estimates derived from the co-twin literature.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 806

Classification and Topics

• Classification: Wirtschaft ; Analysis of Education ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: Returns to Schooling ; Twins ; Equal Ability Assumption ; Bildungsertrag ; Familie ; Kognition ; Theorie ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sandewall, Örjan ; Cesarini, David ; Johannesson, Magnus
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/81480
• Last update: 10.03.2025, 11:43 AM CET