The Effect of High School Effort on Future Earnings
This essay examines the role of studying in determining future wages. Much of the returns to education literature focuses on the extensive margin by determining the benefit of an extra year of schooling. This essay examines the intensive margin. This essay also analyzes other determinants of wages, and how they relate to an individual's studying behavior and education level decisions. The results from estimating a structural model indicate only a negligible relationship between earnings and studying. A second finding suggests ignoring parental income as a determinant of wages considerably overstates the returns to education.
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