Separating uncertainty from heterogeneity in life cycle earnings

This paper develops and applies a method for decomposing cross section variability of earnings into components that are forecastable at the time students decide to go to college (heterogeneity) and components that are unforecastable. About 60% of variability in returns to schooling is forecastable. This has important implications for using measured variability to price risk and predict college attendance. Copyright 2005, Oxford University Press.

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Year of publication:	2005
Authors:	Cunha, Flavio ; Heckman, James ; Navarro, Salvador
Published in:	Oxford Economic Papers. - Oxford University Press. - Vol. 57.2005, 2, p. 191-261
Publisher:	Oxford University Press

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005564738