The Effect of Schooling and Ability on Achievement Test Scores

Karsten Hansen, James Heckman and Kathleen Mullen

No 9881, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: C15 C35 (search for similar items in EconPapers)
Date: 2003-08
Note: ED PE CH
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Published as Hansen, Karsten T. & Heckman, James J. & Mullen, K.J.Kathleen J., 2004. "The effect of schooling and ability on achievement test scores," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 39-98.

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Related works:
Journal Article: The effect of schooling and ability on achievement test scores (2004)
Working Paper: The effect of schooling and ability on achievement test scores (2003)
Working Paper: The Effect of Schooling and Ability on Achievement Test Scores (2003)
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