Separating uncertainty from heterogeneity in life cycle earnings

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.

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Year of publication:	2005
Authors:	Cunha, Flavio ; Heckman, James J. ; Navarro, Salvador
Publisher:	Uppsala : Institute for Labour Market Policy Evaluation (IFAU)
Subject:	Lebenseinkommen \| Lebenszyklus \| Bildungsverhalten \| Bildungsertrag \| Schätzung \| USA \| earnings \| unforecastable \| forecastable

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Series:	Working Paper ; 2005:6
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	490471781 [GVK] hdl:10419/78701 [Handle]
Classification:	C33 - Models with Panel Data ; D84 - Expectations; Speculations ; I21 - Analysis of Education
Source:	EconStor

Persistent link: https://www.econbiz.de/10010317969