This paper builds upon Cunha's (2015) subjective rationality model in which parents have a subjective belief about the impact of their investment on the early skill formation of their children. We propose that this subjective belief is determined in part by locus of control (LOC), i.e., the...

Flexible labor markets requires geographically mobile workers to be efficient. Otherwise, firms can take advantage of the immobility of workers and extract monopsony rents. In cultures with strong family ties, moving away from home is costly. Thus, individuals with strong family ties rationally...

This paper investigates the influence of parental education on the returns to experience of Italian men using a new longitudinal dataset that contains detailed information on individual working histories. Our favourite panel estimates indicate that an additional year of parental education...

The previous literature on the determinants of individual well-being has failed to fully account for the interdependencies in well-being at the family level. This paper develops an ordered probit model with multiple random effects that allows to identify the intrafamily correlation in...

We study if the combined significant reduction in the pupil-teacher ratio and increase in parental education observed in Italy between the end of IIWW and the end of 1980s had a significant impact on the educational attainment and labor market returns of a representative sample of Italians born...