Trapped, Delayed and Handicapped

Anna Sjögren and Susanna Sällström ()
Additional contact information
Susanna Sällström: Faculty of Economics and Politics, Postal: Cambridge University, and St John's College, Cambridge, CB2 1TP, UK

No 613, Working Paper Series from Research Institute of Industrial Economics

Abstract: The dynamics of self-confidence are modelled in an environment where rational individuals optimally choose educations and occupations with the aim to acquire productive skills while learning about ability. It is shown how the presence of uninformative options can trap individuals below their potential. Furthermore, the trade-off between probability of success and value of skills may induce uncertain individuals to acquire less productive skills on their way to ability intensive occupations. The value of information also induces uncertain individuals to delay their labor market entry. The model can explain differences in perseverance in the face of failure.

Keywords: Self-Confidence; Self-Selection; Skill Accumulation; Bayesian Learning (search for similar items in EconPapers)
JEL-codes: D83 J24 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2004-03-16
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Trapped, Delayed and Handicapped (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0613

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