This paper analyzes the impact of voucher design on student sorting in the application and enrollment phases of parental choice. Much of the existing literature investigates the question of sorting where private schools can screen students. However, the publicly funded U.S. voucher programs require private schools to accept all students unless…

This paper investigates the effect of the timing of tracking on completion of higher education by exploiting unique variation from the Dutch education system. At the age of 12 Dutch students can enrol in tracked schools or in comprehensive schools. The comprehensive schools postpone enrolment into tracked classes by one or two years. OLS- and…

This paper proposes a theoretical framework where "within graduates" wage inequality is related to overeducation/educational mismatch in the labor market. We show that wage inequality may arise because of inefficient self-selection into education in the presence of ability-complementary technological progress and asymmetric information…

In this paper we analyze the role played by self-confidence, modeled as beliefs about one's ability, in shaping task choices. We propose a model in which fully rational agents exploit all the available information to update their beliefs using Bayes' rule, eventually learning their true type. We show that when the learning process does not…

This paper exploits the homogeneity of data from a cohort of Northern Ireland graduates to explore the extent to which both the incidence and impacts of overeducation are specific to individuals of particular ability levels as proxied by their position within the graduate wage distribution. It was found that whilst the incidence of overeducation…

The strong correlation between having graduated from a selective college and success in the labor market has been robustly observed in many countries. There are two major explanations for this finding. One claims that graduating from a selective college assures success in the labor market in a causal sense due to better education, a better alumni…

Using a new twins sample, presents new estimates of schooling returns and "ability" bias and tests that bias's significance. Ability bias may exist even if ability's genetically-endowed component does not affect schooling decisions directly when correlated with other family characteristics (like income) that do affect schooling. (19…

Examines the relationship of earnings and family background, based on Greece's 1977 Special Wages and Salaries Survey. Tests whether returns to education differ significantly according to an individual's socioeconomic background. Contrary to findings for the United Kingdom and the United States, there is a positive relationship between the…

Summarizes the literature on twins-based estimations of schooling returns. Examines implications of endogenous determination of which twin goes to school longer and of measuring schooling with error. Twin-based estimation may complement other methodologies, but is vulnerable to the same inconsistency that afflicts conventional cross-sectional…

Presents an economic model of the relationship among educational effort, ability, employment qualifications, and productivity. Suggests that occupational competency requirements may encourage applicants to restrict their investments in education to the minimum necessary to obtain certification, rather than striving for competency levels that would…

Examines whether employers can infer information about workers' precollege abilities from acquired college credentials and value attainment of credentials because they signal these abilities. Analysis of 1993 National Longitudinal Study of Youth data reveals that employers value attainment of a bachelor's degree for these reasons. Academic degrees…