Describe the factors that determine a person’s education choice. Assume that people choose years of education and follow a stopping rule. Be sure to define the most important concepts in your description, but limit yourself to the basic model.
Describe standard regression model you could use to estimate rate of return to years of schooling and what data you would need.
Explain what ability bias is and how it affects yor regression estimates of the rate of return to schooling (be precise, econometrics could come in handy).
What assumptions do we have to make in the theoretical model you described for this estimation to yield unbiased estimates?
Discuss pros and cons using twins to estimate the rate of return to school
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