(Answered) Examining the effect of education on success and realizing that intelligence also effects success…

➤ Why does intelligence create endogeneity when studying education’s effect on success?
Intelligence creates endogeneity when it affects both education and success but is left out of the model. If intelligence correlates with education and also with outcomes, the estimated effect of education captures part of intelligence’s effect. This omitted confounder biases OLS estimates and misleads causal interpretation.