| Author Name | NAKAMURO Makiko (Tohoku University) /INUI Tomohiko (Nihon University) |
|---|---|
| Creation Date/NO. | December 2012 12-E-076 |
| Research Project | Research on Measuring Productivity in the Service Industries and Identifying the Driving Factors for Productivity Growth |
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Abstract
The objective of this paper is to measure the causal effect of education on earnings using a sample of twins in Japan, with information collected through a web-based survey. The empirical results show that although the conventional OLS estimate is 10.0%, we obtain 9.3% as the estimated rate of return to education after the omitted ability bias and measurement errors in self-reported schooling were corrected. Our findings suggest that the conventional OLS estimate is not largely contaminated by potential biases.
