Smoking, discount rates, and returns to education
AbstractIndividual time preference determines schooling enrolment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Accordingly, we use smoking at age 16 as an instrument for schooling in order to cope with ability bias in a returns to education regression. Doing this for Austrian cross-sectional data, we find no evidence of ability bias.
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Bibliographic InfoPaper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2000-02.
Date of creation: Jan 2000
Date of revision:
returns to education; instrumental variables; ability bias; discount rates;
Other versions of this item:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
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