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Author: Prada, Maria F.
Resulting in 3 citations.
1. Prada, Maria F.
Essays on the Economics of Ability, Education, and Labor Market Outcomes
Ph.D. Dissertation, Department of Economics, University of Maryland, College Park, 2014
Cohort(s): NLSY79
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Armed Forces Qualifications Test (AFQT); Armed Services Vocational Aptitude Battery (ASVAB); College Enrollment; Labor Market Outcomes; Occupations; Wages; Workers Ability

Permission to reprint the abstract has not been received from the publisher.

This dissertation, composed by four chapters, shows that mechanical ability, jointly with cognitive and socio-emotional dimensions, affects schooling decisions and labor market outcomes. Moreover, it demonstrates that this facet of ability has a positive economic return and affects schooling decisions and occupational choices differently than other measures of ability.

Chapter 2 introduces the concept of mechanical ability, describes the tests used to measure it, and briefly compares this dimension with conventional measures of ability.

Chapter 3 presents a general framework to understand the effects of multiple dimensions of ability on outcomes with special emphasis in the selection into occupations and tasks where workers are more productive. This framework is used to decompose the overall effect of unobserved abilities into the components explained by schooling decision, occupational choice, and direct on-the-job productivity. I show that all three dimensions of ability have multiple, heterogeneous, and independent roles. They influence the sorting of workers into schooling and occupations, and also have a direct effect on wages. This implies that a policy that increases ability at advanced ages, when schooling and occupational decisions cannot be altered, may still have a direct impact on wages.

Chapter 4, written in collaboration with Sergio Urzúa, analyzes the implications of considering the three dimensions of ability on the decision of attending four-year college. We find that, despite the high return associated with college attendance, individuals with low levels of cognitive and socio-emotional ability but high mechanical ability could expect higher wages by choosing not to attend a four-year college. These results highlight the importance of exploring alternative pathways to successful careers for individuals with a different profile of skills.

Bibliography Citation
Prada, Maria F. Essays on the Economics of Ability, Education, and Labor Market Outcomes. Ph.D. Dissertation, Department of Economics, University of Maryland, College Park, 2014.
2. Prada, Maria F.
Urzua, Sergio
One Size does not Fit All: Multiple Dimensions of Ability, College Attendance and Wages
NBER Working Paper No. 20752, National Bureau of Economic Research, December 2014.
Also: http://www.nber.org/papers/w20752
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); Cognitive Ability; College Education; Labor Market Outcomes; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Rotter Scale (see Locus of Control); Wages

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).
Bibliography Citation
Prada, Maria F. and Sergio Urzua. "One Size does not Fit All: Multiple Dimensions of Ability, College Attendance and Wages." NBER Working Paper No. 20752, National Bureau of Economic Research, December 2014.
3. Urzua, Sergio
Prada, Maria F.
One Size Does Not Fit All: Multiple Dimensions of Ability, College Attendance and Earnings
Journal of Labor Economics 35,4 (October 2017): 953-991.
Also: http://www.journals.uchicago.edu/doi/abs/10.1086/692477
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); Cognitive Ability; College Education; Earnings

This paper investigates the role of mechanical ability as a determinant of school decisions and labor market outcomes. Using a Roy model of with multiple unobserved abilities and longitudinal data from the NLSY79, we find that this ability has a positive effect on overall earnings. However, in contrast to cognitive and socio-emotional, mechanical ability reduces the likelihood of attending a four-year college. The rationale for this asymmetry comes from its large estimated impact of earnings conditional on not attending four-year college. Our findings highlight the importance of moving beyond the one-size-fits-all discourses to offer individuals alternative educational pathways to successful careers.
Bibliography Citation
Urzua, Sergio and Maria F. Prada. "One Size Does Not Fit All: Multiple Dimensions of Ability, College Attendance and Earnings." Journal of Labor Economics 35,4 (October 2017): 953-991.