Abstract:
I investigate the influences of family environment and genes on children’s educational outcomes by working with data on Korean American adoptees and their non-adoptive siblings. I make use of the natural experiment setting where children were quasi-randomly assigned to families. From Sacerdote’s discussion of the three different approaches of analyzing the data, I derive a single-equation model that encompasses the three approaches as a few of its specific cases. The first part of my analysis identifies the causal effect of being assigned to a certain family environment. The second part of my analysis looks into causes of the differences between the educational attainment of adoptees and biological children, adding to the economists’ discussion on the relative importance of nature and nurture.
