The Non-Market Benefits of Education and Ability

James Heckman, John Humphries and Gregory Veramendi

No 11047, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: household behavior and family economics; health and inequality; government policy; returns to education; education and inequality (search for similar items in EconPapers)
JEL-codes: D1 I14 I24 I26 I28 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2017-09
New Economics Papers: this item is included in nep-cta and nep-edu
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Citations: View citations in EconPapers (11)

Published - published in: Journal of Human Capital, 2018, 12 (2), 282 - 304

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https://docs.iza.org/dp11047.pdf (application/pdf)

Related works:
Journal Article: The Nonmarket Benefits of Education and Ability (2018)
Working Paper: The Non-Market Benefits of Education and Ability (2017)
Working Paper: The Non-Market Benefits of Education and Ability (2017)
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