Separating Uncertainty from Heterogeneity in Life Cycle Earnings
James Heckman and
Salvador Navarro ()
No 11024, NBER Working Papers from National Bureau of Economic Research, Inc
This paper develops and applies a method for decomposing cross section variability of earnings into components that are forecastable at the time students decide to go to college (heterogeneity) and components that are unforecastable. About 60% of variability in returns to schooling is forecastable. This has important implications for using measured variability to price risk and predict college attendance.
JEL-codes: C33 D84 I21 (search for similar items in EconPapers)
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Published as Cunha, Flavio, James Heckman and Salvador Navarro. "Separating Uncertainty From Heterogeneity In Life Cycle Earnings," Oxford Economic Papers, 2005, v57(2,Apr), 191-261.
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Journal Article: Separating uncertainty from heterogeneity in life cycle earnings (2005)
Working Paper: Separating uncertainty from heterogeneity in life cycle earnings (2004)
Working Paper: Separating Uncertainty from Heterogeneity in Life Cycle Earnings (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:11024
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