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We show that data on subjective expectations, especially on outcomes from counterfactual choices and choice probabilities, are a powerful tool in recovering ex ante treatment effects as well as preferences for different treatments. In this paper we focus on the choice of occupation, and use...
Persistent link: https://www.econbiz.de/10010416773
We argue that once we take into account the students' rational enrollment decisions, mismatch in the sense that the … possess private information about students' post-enrollment treatment effects. This necessary condition for mismatch provides … private information that is a statistically significant predictor of the students' post-enrollment academic performance. We …
Persistent link: https://www.econbiz.de/10014208761
We provide evidence that graduating from college plays a direct role in revealing ability to the labor market. Using the NLSY79, our results suggest that ability is observed nearly perfectly for college graduates. In contrast, returns to AFQT for high school graduates are initially very close to...
Persistent link: https://www.econbiz.de/10014195394