Education, Decision-Making, and Economic Rationality

Abstract

This article studies the causal effect of education on decision-making. In 1972 England raised its minimum school-leaving age from 15 to 16 for students born after September 1, 1957. An online survey was conducted with 2,700 individuals born in a 36-month window on either side of this date. Participants made 25 incentivized risk choices that allow us to measure multiple dimensions of decision-making. Despite the policy having effects on education, educational qualifications, and income, we find no effects of the policy on decision-making or decision-making quality.

Keywords: Education, Decision-Making, Rationality

JEL Classification: D12, D14, D81, D91, G11, I20, I21