Abstract
Individual time preference determines schooling enrolment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Insofar as discount rates are uncorrelated to ability, predicting school enrolment by discount rates can get rid of the ability bias in an earnings regression. Accordingly, we use smoking at age 16 as an instrument for schooling. Doing this for Austrian cross-sectional data, we find no evidence of ability bias in a simple earnings regression; the results are more mixed if family background is also included.
| Original language | English |
|---|---|
| Pages (from-to) | 561-566 |
| Number of pages | 6 |
| Journal | Economics of Education Review |
| Volume | 22 |
| DOIs | |
| Publication status | Published - 2003 |
Fields of science
- 405002 Agricultural economics
- 502 Economics
- 502001 Labour market policy
- 502002 Labour economics
- 502003 Foreign trade
- 502009 Corporate finance
- 502010 Public finance
- 502012 Industrial management
- 502013 Industrial economics
- 502018 Macroeconomics
- 502020 Market research
- 502021 Microeconomics
- 502025 Econometrics
- 502027 Political economy
- 502039 Structural policy
- 502042 Environmental economics
- 502046 Economic policy
- 502047 Economic theory
- 504014 Gender studies
- 506004 European integration
- 507016 Regional economy
- 303010 Health economics
