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Separating Uncertainty from Heterogeneity in Life Cycle Earnings / Flavio Cunha, James J. Heckman, Salvador Navarro.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Cunha, Flavio.
Contributor:
National Bureau of Economic Research.
Heckman, James J.
Navarro, Salvador.
Series:
Working Paper Series (National Bureau of Economic Research) no. w11024.
NBER working paper series no. w11024
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2005.
Summary:
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.
Notes:
Print version record
January 2005.

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