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The Non-Market Benefits of Education and Ability

Author

Listed:
  • James J. Heckman

    (The University of Chicago)

  • John Eric Humphries

    (Yale University)

  • Gregory Veramendi

    (W.P. Carey School of Business, Arizona State University)

Abstract

This paper analyzes the non-market benefits of education and ability. Using a dynamic model of educational choice we estimate returns to education that account for selection bias and sorting on gains. We investigate a range of non-market outcomes including incarceration, mental health, voter participation, trust, and participation in welfare. We find distinct patterns of returns that depend on the levels of schooling and ability. Unlike the monetary benefits of education, the benefits to education for many non-market outcomes are greater for low-ability persons. College graduation decreases welfare use, lowers depression, and raises self-esteem more for less-able individuals.

Suggested Citation

  • James J. Heckman & John Eric Humphries & Gregory Veramendi, 2017. "The Non-Market Benefits of Education and Ability," Working Papers 2017-072, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2017-072
    Note: ECI, MIP
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    education; Inequality; returns to education; government policy; health inequality; household behavior; family economics;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • D10 - Microeconomics - - Household Behavior - - - General

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