The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of...

During World War I, the birth rate in France fell by 50 percent. Why? I build a model of fertility choices where the war implies a positive probability that a wife remains alone, a partially-compensated loss of a husband’s income, and a temporary decline in productivity followed by faster growth. I calibrate the model’s key parameters using pre-war data. I find that it accounts for 91 percent o...

The Impact of Participation in Sports on Educational Attainment: New Evidence from Germany We analyze the impact of exercising sports during childhood and adolescence on educational attainment. The theoretical framework is based on models of allocation of time and educational productivity. Using the rich information from the German Socio-Economic Panel (GSOEP), we apply generalized ordered prob...

Usual estimates of the female-male wage gap may be biased because female selection could be different in different parts of the labor market. This paper proposes an estimator for the wage gap in models with unobserved heterogeneity in the selection rule. It applies to the subpopulation of “always employed” women, which is similar to men in labor force attachment. Using CPS data from 1976 to 200...

Using longitudinal data from the German Socio-Economic Panel (SOEP), we show that paternal unemployment has a surprisingly positive causal effect on the “Big 5” personality traits of children aged 17 to 25. In particular, our results from longitudinal value-added models for personality suggest that paternal unemployment makes children significantly more conscientious and less neurotic. Our resu...

Increasing access to education may have consequences that go beyond the effects on marginal students induced to enroll. It may change school quality, peer effects, and returns to skill. This paper studies the effects of an educational expansion on student learning, exploiting an Italian reform that changed the admission requirements for university STEM majors. Newly collected administrative dat...

We provide theory for calculating bounds on both the value of an individual’s human capital and the return on an individual’s human capital, given knowledge of the process governing earnings and financial asset returns. We calculate bounds using U.S. data on male earnings and financial asset returns. The large idiosyncratic component of earnings risk implies that bounds on values and returns ar...

Overskilling, Job Insecurity and Career Mobility This paper uses longitudinal data from Australia to examine the extent to which overskilling – the extent to which work-related skills and abilities are utilized in current employment – is a transitory phenomenon. The results suggest that while overskilled workers are much more likely to want to quit their current job, they are also relatively un...

This paper provides evidence of the effect of age at school entry on college admission and earnings. It does so by exploiting a number of features in the application process to one of the major flagship universities in Brazil. By comparing applicants with different ages at school entry depending on whether they were born on December 31 or on January 1, our estimates show that applicants who del...

Absolute Risk Aversion and the Returns to Education Individual absolute risk aversion is measured for a sample of 1373 male household heads, using the 1995 wave of the Survey on the Income and Wealth of Italian households. This measure, conditional on financial and real wealth and household income, is used as an instrument for attained education in a standard log earnings equation. I find that,...