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The effect of education on time preferences

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  • Perez-Arce, Francisco

Abstract

I examine whether education increases patience by analyzing a case study of a public college in Mexico City where admission decisions are determined through a lottery. Applicants who were successful in the draw were more likely to be studying in the following years. I 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. I find that individuals who acquired more education due to the admission lottery were, on average, more patient, which suggests there may be a causal effect of education on time preferences.

Suggested Citation

  • Perez-Arce, Francisco, 2017. "The effect of education on time preferences," Economics of Education Review, Elsevier, vol. 56(C), pages 52-64.
    • Handle: RePEc:eee:ecoedu:v:56:y:2017:i:c:p:52-64
    DOI: 10.1016/j.econedurev.2016.11.004
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