This paper looks at the joint impact of labour market risk and selection in to the labour market on returns to … education. Accounting for non-employment risk leads to substantial changes in returns while wage risk has little impact. The … risk- adjusted returns to both high school and college for males are larger than unadjusted returns. For females, risk …

pivotal role of risk attitudes and the schooling gradient of earnings risk. We use Spanish data to document the gradient and … to estimate individual response to earnings risk in deciding on attending university education, by measuring risk as the … risk aversion, the response may be reversed to positive. …

under-explored. We shed light on this issue by estimating the risk-return trade-off in the context of education. If … education is indeed an investment, risk could play an important role in individual educational decisions just as with risky … measures of risk based on the entire distribution of returns to education recovered by our nonparametric models. Our results …