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Title: Essays on the Economics of Ability, Education, and Labor Market Outcomes
Resulting in 1 citation.
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.