This paper investigates the relationship between parents¡¯ education and children¡¯s wage using two nationally representative data sets in China. Controlling for other things, both father¡¯s and mother¡¯s education are positively correlated with children¡¯s wage. Nevertheless, returns...

Consider an observed binary regressor D and an unobserved binary variable D*, both of which affect some other variable Y . This paper considers nonparametric identification and estimation of the effect of D on Y , conditioning on D* = 0. For example, suppose Y is a person¡¯s wage, the...