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schooling and market ability is found to be positive and is consistent with the existence of a positive "Ability Bias". …
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correlation between the utility of attending school and unobserved labor market ability (ability bias). Estimates of the return to … schooling which take into account the ability bias are found to be between 25% and 30% smaller than those obtained ignoring it. …
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schooling attainments. We find that a counterfactual increase in risk aversion will increase schooling attainments. Finally, the …
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