One Size does not Fit All: Multiple Dimensions of Ability, College Attendance and Wages

Maria Prada () and Sergio Urzua

No 20752, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We investigate the role of mechanical ability as another dimension that, jointly with cognitive and socio-emotional, affects schooling decisions and labor market outcomes. Using a Roy model with a factor structure and data from the NLSY79, we show that the labor market positively rewards mechanical ability. However, in contrast to the other dimensions, mechanical ability reduces the likelihood of attending four-year college. We find that, on average, for individuals with high levels of mechanical and low levels of cognitive and socio-emotional ability, not attending four-year college is the alternative associated with the highest hourly wage (ages 25-30).

JEL-codes: C38 J24 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-edu, nep-lab and nep-lma
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Published as María F. Prada & Sergio Urzúa, 2017. "One Size Does Not Fit All: Multiple Dimensions of Ability, College Attendance, and Earnings," Journal of Labor Economics, vol 35(4), pages 953-991.

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