Smoking, Discount Rates, and Returns to Education

Josef Fersterer () and Rudolf Winter-Ebmer
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Josef Fersterer: University of Linz

No 126, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Individual time preference determines schooling enrolment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Accordingly, we use smoking at age 16 as an instrument for schooling in order to cope with ability bias in a returns to education regression. Doing this for Austrian cross-sectional data, we find no evidence of ability bias.

Keywords: discount rates; Returns to education; instrumental variables; ability bias (search for similar items in EconPapers)
JEL-codes: I22 J31 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2000-03
New Economics Papers: this item is included in nep-edu, nep-hea and nep-lab
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Citations: View citations in EconPapers (9)

Published - published in: Economics of Education Review, 2003, 22 (6), 561-566

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Related works:
Journal Article: Smoking, discount rates, and returns to education (2003)
Working Paper: Smoking, discount rates, and returns to education (2000)
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