Author, as appears in the article.: Hartog J; Diaz-Serrano L
Department: Economia
URV's Author/s: Díaz Serrano, Luis
Keywords: Schooling decisions In-variables models Earnings risk uncertainty schooling decisions returns life-cycle estimator empirical-analysis aversion
Abstract: We develop a simple human capital model for optimum schooling length when earnings are stochastic, and highlight the 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 residual variance in regional earnings functions. We find that the basic response is negative but that in households with lower risk aversion, the response will be dampened substantially and may even be reversed to positive.
Thematic Areas: Interdisciplinar General economics,econometrics and finance Economics, econometrics and finance (miscellaneous) Economics, econometrics and finance (all) Economics Economia Ciencias sociales
licence for use: https://creativecommons.org/licenses/by/3.0/es/
ISSN: 15140326
Author's mail: luis.diaz@urv.cat
Author identifier: 0000-0001-9479-5091
Record's date: 2023-05-21
Papper version: info:eu-repo/semantics/publishedVersion
Papper original source: Journal Of Applied Economics. 10 (1): 1-28
APA: Hartog J; Diaz-Serrano L (2007). Earnings risk and demand for higher education: A cross-section test for Spain. Journal Of Applied Economics, 10(1), 1-28
Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
Entity: Universitat Rovira i Virgili
Journal publication year: 2007
Publication Type: Journal Publications
Repositori URV