Absolute Risk Aversion and the Returns to Education
Individual absolute risk aversion is measured for a sample of 1373 male household heads, using the 1995 wave of the Survey on the Income and Wealth of Italian households. This measure, conditional on financial and real wealth and household income, is used as an instrument for attained education in a standard log earnings equation. I find that, in line with the literature, the gap between IV and OLS estimates of the returns to education is large.
|Date of creation:||Aug 2000|
|Date of revision:|
|Publication status:||published in: Economics of Education Review, 2002, 21(6), 635-640|
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References listed on IDEAS
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- Fersterer, Josef & Winter-Ebmer, Rudolf, 2003.
"Smoking, discount rates, and returns to education,"
Economics of Education Review,
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- Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-86, December.
- Barsky, Robert B, et al, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 537-79, May.
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