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- W35498610 abstract "This dissertation consists of two chapters. In the first chapter, I explain changes in the life-cycle earnings profile for different birth cohorts. The second chapter assesses the quantitative importance of federal aid for college education in explaining college premium. In the first chapter, I document the life-cycle earnings profile for the 25-yearold collegeand high school-educated white men in 1940, 1950, 1960 and 1970. I find that later cohorts have flatter average life-cycle earnings profile. Using a version of the Ben-Porath model, I propose an explanation based on the composition effect. In my model, all individuals have a high school diploma and are differentiated by their ability. They must decide whether to work or go to a four-year college. There is a threshold ability above which individuals choose to attend college and below which they work. All cohorts face the same ability distribution and an exogenous sequence of wage rate per unit of human capital that grows at a constant rate. A higher initial level of wage rate increases college attainment implying that the average ability is lower for both collegeand high school-educated individuals. From the BenPorath model, lower ability individuals have less steep increment in their earnings. This implies that the average college (and high school) life-cycle earnings profile for the 1970 cohort will be flatter than that of the 1940 cohort. My model is able to quantitatively explain 67 and 35 percent of the flattening in the average life-cycle earnings profile for college and high school-educated individuals, respectively." @default.
- W35498610 created "2016-06-24" @default.
- W35498610 creator A5052807302 @default.
- W35498610 date "2018-11-29" @default.
- W35498610 modified "2023-10-11" @default.
- W35498610 title "Ability, education choice and life cycle earnings" @default.
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- W35498610 doi "https://doi.org/10.17077/etd.x1fd3i7q" @default.
- W35498610 hasPublicationYear "2018" @default.
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