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Source: Journal of Economic Dynamics and Control
Resulting in 2 citations.
1. Keller, Elisa
The Slowdown in American Educational Attainment
Journal of Economic Dynamics and Control 46 (September 2014): 252-270.
Also: http://www.sciencedirect.com/science/article/pii/S0165188914001705
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): College Degree; Earnings; Educational Attainment; High School Completion/Graduates; Human Capital

Relative to those for high school graduates, lifetime earnings for college graduates are higher for more recent cohorts. At the same time, across successive cohorts born after 1950, there is a stagnation in the fraction of high school graduates that go on to complete a college degree. What explains this phenomenon? I formulate a life-cycle model of human capital accumulation in college and on the job, where successive cohorts decide whether or not to acquire a college degree as well as the quality of their college education. Cohorts differ by the sequence of rental price per unit of human capital they face and by the distribution of initial human capital across individuals. My model reproduces the observed pattern in college attainment for the 1920 to 1970 birth cohorts. The stagnation in college attainment is due to the decrease in the growth rate of the rental price per unit of human capital commencing in the 1970s. My model also generates about 80% of the increase in lifetime earnings for college graduates relative to those for high school graduates observed across cohorts.
Bibliography Citation
Keller, Elisa. "The Slowdown in American Educational Attainment." Journal of Economic Dynamics and Control 46 (September 2014): 252-270.
2. Poschke, Markus
Who Becomes an Entrepreneur? Labor Market Prospects and Occupational Choice
Journal of Economic Dynamics and Control 37,3 (March 2013): 693-710.
Also: http://www.sciencedirect.com/science/article/pii/S0165188912002175
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Entrepreneurship; Modeling; Occupational Choice; Wages

This paper provides new theory and evidence on the relationship between ability and entrepreneurship. I show that there is a U-shaped relationship between the probability of entrepreneurship and both a person's schooling and wage when employed. This pattern can be explained in a model of occupational choice between wage work and entrepreneurship where a firm's productivity is uncertain before entry, potential wages are heterogeneous, and expected productivity is positively related to an entrepreneur's potential wage. Search, or the ability to keep good projects and reject bad ones, attracts low-ability agents into entrepreneurship. The model also explains why low-profit firms do not always exit.
Bibliography Citation
Poschke, Markus. "Who Becomes an Entrepreneur? Labor Market Prospects and Occupational Choice." Journal of Economic Dynamics and Control 37,3 (March 2013): 693-710.