Returns to Education: Evidence from UK Twins

24 Pages Posted: 6 Jun 2002

See all articles by Dorothe Bonjour

Dorothe Bonjour

University of Westminster - Policy Studies Institute

Lynn Cherkas

St. Thomas' Hospital, London

Jonathan Haskel

Imperial College Business School; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Denise D. Hawkes

University of London - Center for Longitudinal Studies

Tim D. Spector

King's College London - Department of Twin Research and Genetic Epidemiology; St. Thomas' Hospital, London

Multiple version iconThere are 2 versions of this paper

Date Written: April 2002

Abstract

We use a new sample of UK female identical twins to estimate private economic returns to education. We report findings in three areas. First, we use identical twins, to control for family effects and genetic ability bias, and the education reported by the other twin to control for schooling measurement error. Our estimates suggest a return to schooling for UK females of about 7.7%. Second, we investigate within-twin pair ability differences by examining within-twin pair and between-family correlations of education with observable correlates of ability (including birthweight, ability tests and reading scores). Our findings suggest lower ability bias in within-twin pair regressions than pooled regressions. Third, using data on twins smoking we show smoking reflects family background and using it as an instrument exacerbates ability bias.

Keywords: Bias, returns to education, ability, twins, measurement error, smoking

JEL Classification: I21, J24, J31

Suggested Citation

Bonjour, Dorothe and Cherkas, Lynn and Haskel, Jonathan and Hawkes, Denise Donna and Spector, Tim D., Returns to Education: Evidence from UK Twins (April 2002). Available at SSRN: https://ssrn.com/abstract=315259

Dorothe Bonjour (Contact Author)

University of Westminster - Policy Studies Institute ( email )

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London, NW1 3SR
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+44 20 7468 2278 (Phone)
+44 20 7388 0914 (Fax)

Lynn Cherkas

St. Thomas' Hospital, London ( email )

Lambeth Palace Road
London, SE1 7EH
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Jonathan Haskel

Imperial College Business School ( email )

South Kensington Campus
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London SW7 2AZ, SW7 2AZ
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020 7594 8563 (Phone)
020 7594 5915 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Denise Donna Hawkes

University of London - Center for Longitudinal Studies ( email )

20 Bedford Way
London, WC1 OAL
United Kingdom

Tim D. Spector

King's College London - Department of Twin Research and Genetic Epidemiology

Strand
London, England WC2R 2LS
United Kingdom

St. Thomas' Hospital, London ( email )

Lambeth Palace Road
London, SE1 7EH
United Kingdom

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