TY  - JOUR
AU  - Ashenfelter,Orley
AU  - Rouse,Cecilia
TI  - Income, Schooling, and Ability: Evidence from a New Sample of Identical Twins
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6106
PY  - 1997
Y2  - July 1997
UR  - http://www.nber.org/papers/w6106
L1  - http://www.nber.org/papers/w6106.pdf
N1  - Author contact info:
Orley C. Ashenfelter
Industrial Relations Section
Firestone Library
Princeton University
Princeton, NJ  08544
Tel: 609/258-4040
Fax: 609/258-2907
E-Mail: c6789@princeton.edu

Cecilia E. Rouse
Industrial Relations Section
Firestone Library
Princeton University
Princeton, NJ 08544-1013
Tel: 609/258-6478
Fax: 609/258-0549
E-Mail: rouse@princeton.edu
AB  - We develop a model of optimal schooling investments and estimate it using new data on approximately 700 identical twins. We estimate an average return to schooling of 9 percent for identical twins, but estimated returns appear to be slightly higher for less able individuals.  Simple cross-section estimates are marginally upward biased.  These empirical results imply that more able individuals attain more schooling because they face lower marginal costs of schooling, not because of higher marginal benefits.
ER  -