|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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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.