In their article in this Review, W. Lee Hansen, Burton Weisbrod, and William Scanlon (HWS) conclude that estimated payoff to more schooling is for their sample of men who were rejected for military service due to low scores on the Armed Forces Qualification Test (AFQT). It is shown in this comment that they obtained a downward biased estimate of the true profitability of schooling for their sample and that the correct rate of return may be at least 13 percent. While this is lower than the rate of return to males from high school, it is similar to the private return from college.' The HWS data are a sample taken in November 1963 of approximately 2,400 males, aged 17 to 25. The dependent variable (Y) is annual income in 1962 after deducting transfer payments. The explanatory variables include years of schooling (S), age (A), AFQT score (AFQT), and a dummy variable which takes the value of one if the individual received training outside of school (T). Their model is