Sequential Choices, Option Values, and the Returns to Education

• Tác giả: Manudeep Bhuller, Philipp Eisenhauer, Moritz Mendel
• Ngôn ngữ: eng
• Ký hiệu phân loại: 649.5 Childrens activities and recreation
• Thông tin xuất bản: 2022
• Bộ sưu tập: Metadata
• ID: 195121

Tóm tắt

Using detailed Norwegian data on earnings, education and work histories, we estimate a dynamic structural model of education and sector choices that captures rich life-cycle patterns by ability. We validate the model against variation in education choices induced by a compulsory schooling reform. Our approach allows us to estimate the ex-ante returns to different education tracks across the life-cycle by individual ability and quantify the contribution of option values. We find substantial heterogeneity in returns and establish crucial roles for option values and re-enrollment in determining education choices and the impact of schooling policies.