Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81190
Authors: 
Sjögren, Anna
Sällström, Susanna
Year of Publication: 
2004
Series/Report no.: 
IUI Working Paper 613
Abstract: 
The dynamics of self-confidence are modelled in an environment where rational individuals optimally choose educations and occupations with the aim to acquire productive skills while learning about ability. It is shown how the presence of uninformative options can trap individuals below their potential. Furthermore, the trade-off between probability of success and value of skills may induce uncertain individuals to acquire less productive skills on their way to ability intensive occupations. The value of information also induces uncertain individuals to delay their labor market entry. The model can explain differences in perseverance in the face of failure.
Subjects: 
Self-Confidence
Self-Selection
Skill Accumulation
Bayesian Learning
JEL: 
D83
J24
Document Type: 
Working Paper

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