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Investing in human capital increases lifetime income, but these investments may involve substantial risk. In this paper … income, and to calculate certainty equivalent lifetime income at different levels of education. We find that university … education is associated with about a half a million euro increase in discounted lifetime disposable income compared to …
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Incentives to invest in higher education are affected by both the direct wage effect of human capital investments and the indirect wage effect resulting from lower unemployment risks and shorter spells in unemployment associated with higher educated. We analyse the returns to education in...
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