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One Size does not Fit All: Multiple Dimensions of Ability, College Attendance and Wages

Author

Listed:
  • María F. Prada
  • Sergio S. Urzúa
Abstract
We investigate the role of mechanical ability as another dimension that, jointly with cognitive and socio-emotional, affects schooling decisions and labor market outcomes. Using a Roy model with a factor structure and data from the NLSY79, we show that the labor market positively rewards mechanical ability. However, in contrast to the other dimensions, mechanical ability reduces the likelihood of attending four-year college. We find that, on average, for individuals with high levels of mechanical and low levels of cognitive and socio-emotional ability, not attending four-year college is the alternative associated with the highest hourly wage (ages 25-30).

Suggested Citation

  • María F. Prada & Sergio S. Urzúa, 2014. "One Size does not Fit All: Multiple Dimensions of Ability, College Attendance and Wages," NBER Working Papers 20752, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20752
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    References listed on IDEAS

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    Cited by:

    1. Isaac Baley & Ana Figueiredo & Robert Ulbricht, 2022. "Mismatch Cycles," Journal of Political Economy, University of Chicago Press, vol. 130(11), pages 2943-2984.
    2. Acosta, Pablo A. & Muller, Noel & Sarzosa, Miguel, 2015. "Beyond Qualifications: Returns to Cognitive and Socio-Emotional Skills in Colombia," IZA Discussion Papers 9403, Institute of Labor Economics (IZA).
    3. Costas Cavounidis & Kevin Lang, 2017. "Ben-Porath meets Lazear: Lifetime Skill Investment and Occupation Choice with Multiple Skills," NBER Working Papers 23367, National Bureau of Economic Research, Inc.
    4. Böhm, Michael Johannes, 2017. "The Price of Polarization: Estimating Task Prices under Routine-Biased Technical Change," IZA Discussion Papers 11220, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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