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What do the education premiums look like over the life cycle? What is the impact of schooling on lifetime earnings? How does the internal rate of return compare with opportunity cost of funds? To what extent do progressive taxes attenuate the incentives to invest in education? This paper...
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asymmetric information. The model shows that, in a labour market where education is used as a signalling device, an imperfect …-ability individuals choose to quit school and become entrepreneurs. Using a comprehensive set of Norwegian register data, I find that this …
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In a recent paper, García-Mainar and Montuenga-Gómez (2005) apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners and the self-employed in Portugal and in Spain. Our examination reveals several problems which relate to the validity and documentation...
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