TY - JOUR AU - Hansen,Karsten AU - Heckman,James J. AU - Mullen,Kathleen J. TI - The Effect of Schooling and Ability on Achievement Test Scores JF - National Bureau of Economic Research Working Paper Series VL - No. 9881 PY - 2003 Y2 - August 2003 UR - http://www.nber.org/papers/w9881 L1 - http://www.nber.org/papers/w9881.pdf N1 - Author contact info: James J. Heckman Department of Economics The University of Chicago 1126 E. 59th Street Chicago, IL 60637 Tel: 773/702-0634 Fax: 773/702-8490 E-Mail: jjh@uchicago.edu Kathleen Mullen RAND Corporation 1776 Main Street P.O. Box 2138 Santa Monica, CA 90407-2138 E-Mail: Kathleen_Mullen@rand.org AB - This paper develops two methods for estimating the effect of schooling on achievement test scores that control for the endogeneity of schooling by postulating that both schooling and test scores are generated by a common unobserved latent ability. These methods are applied to data on schooling and test scores. Estimates from the two methods are in close agreement. We find that the effects of schooling on test scores are roughly linear across schooling levels. The effects of schooling on measured test scores are slightly larger for lower latent ability levels. We find that schooling increases the AFQT score on average between 2 and 4 percentage points, roughly twice as large as the effect claimed by Herrnstein and Murray (1994) but in agreement with estimates produced by Neal and Johnson (1996) andWinship and Korenman (1997). We extend the previous literature by estimating the impact of schooling on measured test scores at various quantiles of the latent ability distribution. ER -