One Size Does Not Fit All: Multiple Dimensions of Ability, College Attendance, and Earnings

Maria Prada () and Sergio Urzua

Journal of Labor Economics, 2017, vol. 35, issue 4, 953 - 991

Abstract: This paper investigates the role of mechanical ability as a determinant of schooling decisions and labor market outcomes. Using a Roy model with multiple unobserved abilities and longitudinal data from NLSY79, we find that this ability has a positive effect on overall earnings. However, in contrast to cognitive and socioemotional abilities, mechanical ability reduces the likelihood of 4-year college attendance. The rationale for this asymmetry comes from its large estimated impact on earnings conditional on not attending a 4-year college. Our findings highlight the importance of moving beyond the one-size-fits-all discourse to offer individuals alternative educational pathways to successful careers.

Date: 2017
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