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Trapped, Delayed and Handicapped

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Author Info
Sjögren, Anna () (The Research Institute of Industrial Economics)
Sällström, Susanna () (Faculty of Economics and Politics)

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Abstract

The dynamics of self-confidence are modelled in an environment where rational individuals optimally choose educations and occupations with the aim to acquire productive skills while learning about ability. It is shown how the presence of uninformative options can trap individuals below their potential. Furthermore, the trade-off between probability of success and value of skills may induce uncertain individuals to acquire less productive skills on their way to ability intensive occupations. The value of information also induces uncertain individuals to delay their labor market entry. The model can explain differences in perseverance in the face of failure.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 613.

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Length: 42 pages
Date of creation: 16 Mar 2004
Date of revision:
Handle: RePEc:hhs:iuiwop:0613

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
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Related research
Keywords: Self-Confidence; Self-Selection; Skill Accumulation; Bayesian Learning;

Other versions of this item:

Find related papers by JEL classification:
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. Kim-Sau Chung, 2000. "Role Models and Arguments for Affirmative Action," American Economic Review, American Economic Association, vol. 90(3), pages 640-648, June. [Downloadable!] (restricted)
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    Other versions:
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  12. Blackaby, David & Frank, Jeff, 2000. "Ethnic and Other Minority Representation in UK Academic Economics," Economic Journal, Royal Economic Society, vol. 110(464), pages F293-311, June. [Downloadable!] (restricted)
  13. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier. [Downloadable!] (restricted)
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  14. Monks, James, 1997. "The impact of college timing on earnings," Economics of Education Review, Elsevier, vol. 16(4), pages 419-423, October. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kai A. Konrad & Amedeo Spadaro, 2003. "Selection Filters, Redistributive Taxation and Overconfidence," DELTA Working Papers 2003-22, DELTA (Ecole normale supérieure). [Downloadable!]
  2. Sjögren, Anna & Saez-Marti, Maria, 2004. "On the Timing of Education," Working Paper Series 614, Research Institute of Industrial Economics. [Downloadable!]
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