Absolute Risk Aversion and the Returns to Education

Giorgio Brunello

No 192, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Individual absolute risk aversion is measured for a sample of 1373 male household heads, using the 1995 wave of the Survey on the Income and Wealth of Italian households. This measure, conditional on financial and real wealth and household income, is used as an instrument for attained education in a standard log earnings equation. I find that, in line with the literature, the gap between IV and OLS estimates of the returns to education is large.

Keywords: Returns to education; instrumental variables (search for similar items in EconPapers)
JEL-codes: J24 J31 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2000-08
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Citations: View citations in EconPapers (3)

Published - published in: Economics of Education Review, 2002, 21(6), 635-640

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