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https://hdl.handle.net/10419/20880
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DC Field | Value | Language |
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dc.contributor.author | Belzil, Christian | en |
dc.contributor.author | Hansen, Joergen | en |
dc.date.accessioned | 2009-01-28T16:17:32Z | - |
dc.date.available | 2009-01-28T16:17:32Z | - |
dc.date.issued | 1999 | - |
dc.identifier.uri | http://hdl.handle.net/10419/20880 | - |
dc.description.abstract | We estimate a Dynamic Programming model of the decision between continuing schoolingor entering the labor market using a panel from the National Longitudinal Survey (NLSY).The model, set in an expected utility framework (with a power utility function), fits data onboth schooling attainments and wage very well. We find a degree of relative risk aversionmuch smaller than usually found in the finance literature (around 0.6) and a subjectiveannual discount rate between 4\% and 5\%. Various simulations indicate that schoolingattainments are elastic with respect to the return to college education and, to a lesser extent,with respect to measured ability (Armed Forces Qualification Test scores) but inelastic withrespect to household characteristics (especially household income). The ``true''intergenerational correlation between schooling attainments and parents' education (afterconditioning on observed and unobserved ability) is found to be quite low. Finally, ourestimates of the return to schooling indicate strong returns to high school graduation and aclear evidence of a positive correlation between the utility of attending school andunobserved labor market ability (ability bias). Estimates of the return to schooling which takeinto account the ability bias are found to be between 25% and 30% smaller than thoseobtained ignoring it. | en |
dc.language.iso | eng | en |
dc.publisher | |aInstitute for the Study of Labor (IZA) |cBonn | en |
dc.relation.ispartofseries | |aIZA Discussion Papers |x43 | en |
dc.subject.jel | J3 | en |
dc.subject.jel | J2 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Dynamic Programming | en |
dc.subject.keyword | Returns to Education | en |
dc.subject.keyword | Risk Aversion | en |
dc.subject.keyword | Rate of Time Preference | en |
dc.subject.stw | Bildungsertrag | en |
dc.subject.stw | Haushaltsökonomik | en |
dc.subject.stw | Bildungsinvestition | en |
dc.subject.stw | Zeitpräferenz | en |
dc.subject.stw | Sozialstruktur | en |
dc.subject.stw | Schätzung | en |
dc.subject.stw | Theorie | en |
dc.subject.stw | USA | en |
dc.title | Household Characteristics, Ability and Education: Evidence´ from a Dynamic Expected Utility Model | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 830212426 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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