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The Effect of Education on Time Preferences

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  • Francisco Perez-Arce
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    Abstract

    The author examines whether education increases patience. Admission decisions in a public college in Mexico are determined through a lottery. He finds that applicants who were successful in the draw were more likely to study in the following years. He surveyed the applicants to this college almost two years after the admission decision was made and measured their time preferences with a series of hypothetical inter-temporal choice questions. He finds that individuals who were successful in the admission lottery were, on average, more patient. He argues that this evidence points towards a causal effect of education on time preferences.

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    File URL: http://www.rand.org/content/dam/rand/pubs/working_papers/2011/RAND_WR844.pdf
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    Bibliographic Info

    Paper provided by RAND Corporation Publications Department in its series Working Papers with number 844.

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    Length: 49 pages
    Date of creation: Mar 2011
    Date of revision:
    Handle: RePEc:ran:wpaper:844

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    1. John Ameriks & Andrew Caplin & John Leahy & Tom Tyler, 2007. "Measuring Self-Control Problems," American Economic Review, American Economic Association, vol. 97(3), pages 966-972, June.
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    Cited by:
    1. Andalón, Mabel & Williams, Jenny & Grossman, Michael, 2014. "Empowering Women: The Effect of Schooling on Young Women's Knowledge and Use of Contraception," IZA Discussion Papers 7900, Institute for the Study of Labor (IZA).

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