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The Non-Market Benefits of Education and Ability

Author

Listed:
  • Heckman, James J.

    (University of Chicago)

  • Humphries, John Eric

    (Yale University)

  • Veramendi, Gregory

    (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

  • Heckman, James J. & Humphries, John Eric & Veramendi, Gregory, 2017. "The Non-Market Benefits of Education and Ability," IZA Discussion Papers 11047, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11047
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    References listed on IDEAS

    as
    1. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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

    JEL classification:

    • 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
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • D1 - Microeconomics - - Household Behavior

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