Twin Data vs. Longitudinal Data to Control for Unobserved Variables in Earnings Functions – Which Are the Differences?

• Autores: Gunnar Isacsson
• Localización: Oxford bulletin of economics and statistics, ISSN 0305-9049, Vol. 69, Nº. 3, 2007, págs. 339-362
• Idioma: inglés
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• Resumen

  • This paper compares two different approaches empirically to control for unobserved characteristics when estimating the effect of marriage on male and female earnings: the longitudinal and the twins approach. The estimates were obtained by exploiting the longitudinal dimension of a large sample of Swedish twins, so that longitudinal and twin‐based estimates could be obtained in the same sample. The two approaches lead to different conclusions both regarding the role of unobserved characteristics in the cross‐sectional earnings–marriage relationship and the effect of marriage on earnings. The paper investigates three potential explanations of this difference.