Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21077
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dc.contributor.authorModesto, Leonoren_US
dc.date.accessioned2009-01-28T16:19:12Z-
dc.date.available2009-01-28T16:19:12Z-
dc.date.issued2000en_US
dc.identifier.urihttp://hdl.handle.net/10419/21077-
dc.description.abstractIn this paper we analyse educational choices and earnings of individuals at two different levels inthe Portuguese educational system. At each potential exit level we consider two decisions: thedecision to continue studying and the employment decision, whereas normally only the firstdecision is modelled. Correlation between the error terms of the earnings functions and thedecision functions, for each level of education, is allowed and we correct for the potentialselectivity bias.We find empirical support for the existence of selectivity bias as the errors of the earningsfunctions are correlated with the disturbances of both decision functions for both educationallevels considered. Moreover it is precisely the existence of selectivity mechanisms that rendersthe decisions actually taken by individuals optimal in terms of comparative earnings advantage.The obtained marginal rates of return to additional education vary between 2.3 and 9.6 percentper additional year of schooling, depending on whether or not selectivity effects are excludedfrom the computations. This finding reinforces again the importance of selectivity mechanisms inexplaining educational choices.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA Discussion paper series |x230en_US
dc.subject.jelI20en_US
dc.subject.jelJ31en_US
dc.subject.ddc330en_US
dc.subject.keywordEducational choicesen_US
dc.subject.keywordearningsen_US
dc.subject.keywordselectivityen_US
dc.subject.stwBildungsökonomiken_US
dc.subject.stwBildungsverhaltenen_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwBildungsertragen_US
dc.subject.stwEinkommenen_US
dc.subject.stwSchätzungen_US
dc.subject.stwPortugalen_US
dc.titleShould I Stay or Should I Go? Educational Choices and Earnings: An Empirical Study for Portugalen_US
dc.typeWorking Paperen_US
dc.identifier.ppn835514242en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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