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Patience and Subnational Differences in Human Capital: Regional Analysis with Facebook Interests

Author

Listed:
  • Hanushek, Eric A.

    (Hoover Institution, Stanford University; CESifo, IZA, and NBER)

  • Kinne, Lavinia

    (DIW Berlin)

  • Sancassani, Pietro

    (ifo Institute, University of Munich)

  • Woessmann, Ludger

    (University of Munich, ifo Institute; Hoover Institution, Stanford University; CESifo, and IZA)

Abstract
Decisions to invest in human capital depend on people’s time preferences. This paper shows that differences in patience are closely related to substantial subnational differences in educational achievement, leading to new perspectives on longstanding within-country disparities. We use social-media data – Facebook interests – to construct novel regional measures of patience within Italy and the United States. The approach is first validated with a cross-country analysis of patience and Facebook interests. We then show that patience is strongly positively associated with student achievement across regions in both countries, accounting for three-quarters of the achievement variation across Italian regions and one-third across U.S. states. The finding is confirmed in an identification strategy employing variation in ancestry countries of the current population of U.S. states. Results hold for six other countries with more limited regional achievement data.

Suggested Citation

  • Hanushek, Eric A. & Kinne, Lavinia & Sancassani, Pietro & Woessmann, Ludger, 2024. "Patience and Subnational Differences in Human Capital: Regional Analysis with Facebook Interests," CAGE Online Working Paper Series 731, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:731
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp731.2024.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    patience; human capital; student achievement; regions; social media; Facebook JEL Classification: I21; Z10;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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