Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20736
Authors: 
Cunha, Flavio
Heckman, James Joseph
Navarro, Salvador
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1437
Abstract: 
This paper develops and applies a method for decomposing cross section variability of earnings into components that are forecastable at the time students decide to go to college (heterogeneity) and components that are unforecastable. About 60% of variability in returns to schooling is forecastable. This has important implications for using measured variability to price risk and predict college attendance.
Subjects: 
uncertainty
lifecycle earnings
schooling
heterogeneity
counterfactuals
JEL: 
I21
C33
D84
Document Type: 
Working Paper

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