TY  - RPRT
        AU  - Hansen, Karsten T.
AU  - Heckman, James J.
AU  - Mullen, Kathleen
        TI  - The Effect of Schooling and Ability on Achievement Test Scores
        PY  - 2003/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 826
        UR  - https://www.iza.org/publications/dp826
        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) and Winship 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.
        KW  - latent variables
KW  - MCMC
KW  - ability
KW  - education
KW  - selection
        ER  -