This study was prepared by Gabriela Schütz while she was working with the Ifo Institute for Economic Research. It was completed in September 2008 and accepted as a doctoral thesis by the Economics Department of the University of Munich (LMU). The topic of this study is an econometric analysis...

Using information on family background, we estimate returns to education, allowing for the heterogeneity of returns. In order to control for the unobserved heterogeneity shared by family members, we construct a siblings sample and employ family fixed-effects and family correlated random-effects...