2014

The Co-Twin Methodology and Returns to Schooling — Testing a Critical Assumption

Reprint No. 2014:4

Author(s): Örjan Sandewall, David Cesarini and Magnus JohannessonYear: 2014 Title: Labour Economics Volume (No.): 26 (January) Pages: 1–10
Preliminary version

The Co-Twin Methodology and Returns to Schooling — Testing a Critical Assumption Örjan Sandewall, David Cesarini and Magnus Johannesson


Twins-based estimates of the return to schooling have featured prominently in the economics of education literature. Their unbiasedness hinges critically on the assumption that within-pair variation in schooling is explained by factors unrelated to wage earning ability. This paper develops a framework for testing this assumption and shows, in a large sample of monozygotic twins, that the twins-based estimated return to schooling falls if adolescent IQ test scores are included in the wage equation. Using birth weight as an alternative proxy for ability yields qualitatively similar results. Our results thus cast doubt on the validity of twins-based estimates.


Reference:
Sandewall, Örjan, David Cesarini and Magnus Johannesson (2014), "The Co-Twin Methodology and Returns to Schooling — Testing a Critical Assumption". Labour Economics 26(January), 1–10.

Interdisciplinary European Studies

The European Union in a Changing World Order

Pages-from-2019-Oxelheim-m.gif

This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se