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A note on pessimism in education and its economic consequences

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  • Karol Mazur

    (University of Oxford)

Abstract

Investigating interaction of the lumpy nature of educational investments and informational frictions on returns to and costs of education, I show that pessimistic beliefs can be self-confirmed in equilibrium. Among some of its consequences, I argue that the commonly pursued research methods may not always identify the true underlying skill distributions.

Suggested Citation

  • Karol Mazur, 2021. "A note on pessimism in education and its economic consequences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 773-783, December.
    • Handle: RePEc:spr:joecin:v:19:y:2021:i:4:d:10.1007_s10888-021-09486-7
    DOI: 10.1007/s10888-021-09486-7
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