Separating Uncertainty from Heterogeneity in Life Cycle Earnings
Posted: 29 Feb 2008
There are 3 versions of this paper
Separating Uncertainty from Heterogeneity in Life Cycle Earnings
IZA Discussion Paper No. 1437
Number of pages: 125
Posted: 05 Jan 2005
Downloads
161
Separating Uncertainty from Heterogeneity in Life Cycle Earnings
NBER Working Paper No. w11024
Number of pages: 124
Posted: 02 Feb 2005
Last Revised: 17 Aug 2010
Downloads
40
Date Written: April 2005
Abstract
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 Classification: C33; D84; I21
Suggested Citation: Suggested Citation
Cunha, Flavio and Navarro, Salvador, Separating Uncertainty from Heterogeneity in Life Cycle Earnings (April 2005). Oxford Economic Papers, Vol. 57, Issue 2, pp. 191-261, 2005. Available at SSRN: https://ssrn.com/abstract=916832
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