Separating uncertainty from heterogeneity in life cycle earnings

Flavio Cunha, James Heckman and Salvador Navarro

No 2005:6, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper develops and applies a method for decomposing cross section variability of earnings into components that are forecastable at the time students decide to go to college (heterogeneity) and components that are unforecastable. About 60 % of variability in returns to schooling is forecastable. This has important implications for using measured variability to price risk and predict college attendance.

Keywords: earnings; unforecastable; forecastable (search for similar items in EconPapers)
JEL-codes: C33 D84 I21 (search for similar items in EconPapers)
Pages: 122 pages
Date: 2004-12-10
New Economics Papers: this item is included in nep-lam and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (82)

Published in Oxford Economic Papers, 2005, pages 191-261.

Downloads: (external link)
http://www.ifau.se/upload/pdf/se/2005/wp05-06.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.ifau.se/upload/pdf/se/2005/wp05-06.pdf [301 Moved Permanently]--> https://www.ifau.se/upload/pdf/se/2005/wp05-06.pdf)

Related works:
Journal Article: Separating uncertainty from heterogeneity in life cycle earnings (2005)
Working Paper: Separating Uncertainty from Heterogeneity in Life Cycle Earnings (2005)
Working Paper: Separating Uncertainty from Heterogeneity in Life Cycle Earnings (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2005_006

Access Statistics for this paper

More papers in Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy IFAU, P O Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ali Ghooloo ( this e-mail address is bad, please contact ).