Sequential Choices, Option Values, and the Returns to Education
Fuente:
arXiv
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Preprint |
| Published: |
2022
|
| Subjects: | |
| Online Access: | |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1866911939332931584 |
|---|---|
| author | Bhuller, Manudeep Eisenhauer, Philipp Mendel, Moritz |
| author_facet | Bhuller, Manudeep Eisenhauer, Philipp Mendel, Moritz |
| contents | Using detailed Norwegian data on earnings, education and work histories, we estimate a dynamic structural model of education and sector choices that captures rich life-cycle patterns by ability. We validate the model against variation in education choices induced by a compulsory schooling reform. Our approach allows us to estimate the ex-ante returns to different education tracks across the life-cycle by individual ability and quantify the contribution of option values. We find substantial heterogeneity in returns and establish crucial roles for option values and re-enrollment in determining education choices and the impact of schooling policies. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2205_05444 |
| institution | arXiv |
| publishDate | 2022 |
| record_format | arxiv |
| spellingShingle | Sequential Choices, Option Values, and the Returns to Education Bhuller, Manudeep Eisenhauer, Philipp Mendel, Moritz General Economics Economics Using detailed Norwegian data on earnings, education and work histories, we estimate a dynamic structural model of education and sector choices that captures rich life-cycle patterns by ability. We validate the model against variation in education choices induced by a compulsory schooling reform. Our approach allows us to estimate the ex-ante returns to different education tracks across the life-cycle by individual ability and quantify the contribution of option values. We find substantial heterogeneity in returns and establish crucial roles for option values and re-enrollment in determining education choices and the impact of schooling policies. |
| title | Sequential Choices, Option Values, and the Returns to Education |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2205.05444 |