Patience, Risk-Taking, and Human Capital Investment Across Countries

نویسندگان

چکیده

Abstract Patience and risk-taking—two preference components that steer intertemporal decision-making—are fundamental to human capital investment decisions. To understand how they contribute international skill differences, we combine Programme for International Student Assessment tests with the Global Preference Survey. We find opposing effects of patience (positive) risk-taking (negative) together account two-thirds cross-country variation in student skills. In an identification strategy addressing unobserved residence country features, similar results when assigning migrant students their country-of-origin preferences models fixed effects. Associations national family school inputs suggest both may act as channels.

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ژورنال

عنوان ژورنال: The Economic Journal

سال: 2021

ISSN: ['1742-0350', '0013-0133', '1468-0297']

DOI: https://doi.org/10.1093/ej/ueab105