The decision to take more education is complex, and is influenced by individual ability, financial constraints, family background, preferences, etc. Such factors, normally unobserved by the researcher, introduce endogeneity and heterogeneity problems into estimating the returns to education. In...

Parents with higher education levels have children with higher education levels. However, is this because parental education actually changes the outcomes of children, suggesting an important spillover of education policies, or is it merely that more able individuals who have higher education...

School quality is hard to define and measure. It is influenced by not only school expenditures, but also characteristics that are hard to measure like norms and peer effects among teachers and pupils. Furthermore, family background and community characteristics are important in explaining...