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Most empirical investigations of the effects of cognitive skills assume that they are produced by schooling. Drawing on longitudinal data to estimate production functions for adult verbal and nonverbal cognitive skills, we find that: (1) School attainment has a significant and substantial effect...
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recent studies for the Chinese urban labour market. We use parents’ education and spouse's education to instrument for … education as well as exploit heteroskedasticity to aid in identification. The two-stage least squares estimates using parents …’ and spouse's education are considerably higher than the OLS estimates for returns to schooling, while the estimates which …
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