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How skills and parental valuation of education influence human capital acquisition and early labor market return to human capital in Canada

Steven Lehrer

No 1416, Working Paper from Economics Department, Queen's University

Abstract: Using the Youth in Transition Survey we estimate a Roy model with a three dimensional latent factor structure to consider how parental valuation of education, cognitive skills and non-cognitive skills influence endogenous schooling decisions and subsequent labour market outcomes in Canada. We find the effect of cognitive skills on adult incomes arises by increasing the likelihood of obtaining further education. Further, we find that both non-cognitive skills and parental valuation for education play a larger role in determining income at age 25 than cognitive skills. Last, our analysis uncovers striking differences between men and women in several of the estimated relationships. Specifically, simulations of the estimated model illustrate that i) among the low skilled, women have much higher college graduation rates, ii) the age 25 earnings gradient by either skill measure is much flatter for women, and iii) parental valuation of education plays a larger role in influencing young women than men.

Keywords: skills; schooling decisions; early labour market outcomes; gender differences; parental valuation of education (search for similar items in EconPapers)
JEL-codes: C38 I26 J24 (search for similar items in EconPapers)
Pages: 73 pages
Date: 2019-03
New Economics Papers: this item is included in nep-edu and nep-lma
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Citations: View citations in EconPapers (1)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1416.pdf First version 2019 (application/pdf)

Related works:
Journal Article: How Skills and Parental Valuation of Education Influence Human Capital Acquisition and Early Labor Market Return to Human Capital in Canada (2019) Downloads
Working Paper: How skills and parental valuation of education influence human capital acquisition and early labor market return to human capital in Canada (2019) Downloads
Chapter: How Skills and Parental Valuation of Education Influence Human Capital Acquisition and Early Labor Market Return to Human Capital in Canada (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1416

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