Returns to education are variable within the same educational group. If uncertain payoffs are a concern for individuals when selecting education, wage variance is the resultant of unobserved heterogeneity and pure uncertainty. The first element is known to the individual, but unknown to the...

Returns to education are variable within the same educational group. If uncertain payoffs are a concern to individuals when selecting education, wage variance is relevant. It is the resultant of unobserved heterogeneity and pure uncertainty. The first element is known to the individual, but...

How valuable are cognitive and social abilities for entrepreneurs’ incomes as compared to employees? We answer three questions: (1) To what extent does a composite measure of ability affect an entrepreneur's earnings relative to employees? (2) Do different cognitive abilities (e.g. math...

How valuable are cognitive and social abilities for entrepreneurs' incomes as compared to employees? We answer three questions: (1) To what extent does a composite measure of ability affect an entrepreneur's earnings relative to employees? (2) Do different cognitive abilities (e.g. math ability,...