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Finding an instrument that is orthogonal to the disturbance term in the wage equation has been a topic of great deal of debate. Recently, Chesson et al. (2006) proposed that higher discount rates are significantly associated with a range of sexual behaviours, including having sex before age of...
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vocational high school. Accounting for risk does little to change this picture. By contrast, vocational high school is associated …
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, which increases the skill premium due to capital-skill complementarity. Using a quantitative macroeconomic model, we find …
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This paper presents a dynamic model of the decision to pursue a college education in which students face uncertainty about their future income stream after graduation due to unobserved heterogeneity in their innate scholastic ability. After students matriculate and start taking exams, they...
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