TY - JOUR AU - Agrawal, Mohit AU - Altonji, Joseph G AU - Mansfield, Richard K TI - Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting JF - National Bureau of Economic Research Working Paper Series VL - No. 25167 PY - 2018 Y2 - October 2018 DO - 10.3386/w25167 UR - http://www.nber.org/papers/w25167 L1 - http://www.nber.org/papers/w25167.pdf N1 - Author contact info: Mohit Agrawal Yale University PO Box 208268 New Haven, CT 06520-8268 E-Mail: mohitii@gmail.com Joseph G. Altonji Department of Economics Yale University Box 208264 New Haven, CT 06520-8264 Tel: 203/432-6285 Fax: 203/432-5591 E-Mail: joseph.altonji@yale.edu Richard K. Mansfield Economics Building Room 04B University of Colorado-Boulder Boulder, CO 80309 E-Mail: richard.mansfield@colorado.edu M1 - published as Mohit Agrawal, Joseph G. Altonji, Richard K. Mansfield. "Quantifying Family, School, and Location Effects in the Presence of Complementarities and Sorting," in David Card, organizer, "Youth Labor Markets" Journal of Labor Economics, volume 37, supplement 1 (University of Chicago Press) (2019) AB - We extend the control function approach of Altonji and Mansfield (2018) to allow for multiple group levels and complementarities. Our analysis provides a foundation for causal interpretation of multilevel mixed effects models in the presence of sorting. In our empirical application, we obtain lower bound estimates of the importance of school and commuting zone inputs for education and wages. A school/location combination at the 90th versus 10th percentile of the school/location quality distribution increases the high school graduation probability and college enrollment probability by at least .06 and .17, respectively. Treatment effects are heterogeneous across subgroups, primarily due to nonlinearity in the educational attainment model. ER -