Resource title

Separating Uncertainty from Heterogeneity in Life Cycle Earnings

Resource image

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Resource description

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.

Resource author

Flavio Cunha, James Joseph Heckman, Salvador Navarro

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20736

Resource license

Adapt according to the presented license agreement and reference the original author.