Labour Market Return to schooling and Human Capital Investment

Abramitzky Ran and Victor Lavy 2014 Main Finding

high school students achievements increased substantially following increase in returns to education

What was the differing effect between the genders in Abramitzky Ran and Victor Lavy 2014

boys respond more in this paper however wider literature has girls responding more

Which socioeconomic demographic largely drives the change

driven by students whose parents less educated

what type of test is used to show that control and treatment same pre form years

uses falsification tests to show there was no difference

What method did  

Abramitzky Ran and Victor Lavy use

difference in difference with early reform kibbutzim vs late reform kibbutzim

Altonji, Bharadwaj & Lange (2012) Journal of Labor Economics key aim

Tracks how changes in family background and demographic traits of American youth over time affect their educational attainment and labor market outcomes.

Changes in the Characteristics of American Youth: Implications for Adult Outcomes” key methodology

• no experiment just observations of past and current trends

Changes in the Characteristics of American Youth: Implications for Adult Outcomes” key findings

• predicted increases in adult outcomes are lower than expected

• family background matters, but factors like inequality and changes to labor markets institutions also play a role

The (Perceived) Returns to Education and the Demand for Schooling”
Background

Does misperception of education returns reduce investment in schooling, and can information provision increase it?

Jensen robert paper framework

• randomised control trial in Dominican republic

• gave school boys accurate info on returns to schooling and observed decisions

Jensen robert key finding

• schooling investment increased by 0.20 over 4 years

• Info gaps can be a barrier to entry