Education, Decision-Making, and Economic Rationality
46 Pages Posted: 2 Aug 2018
Date Written: August 2, 2018
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
Suggested Citation: Suggested Citation
Leandro S. Carvalho
Center for Economic and Social Research (CESR) ( email )
635 Downey Way
Los Angeles, CA 90089-3332
United States
Francisco Perez-Arce
Center for Economic and Social Research (CESR) ( email )
635 Downey Way
Los Angeles, CA 90089-3332
United States
