Working Paper: NBER ID: w20752
Authors: Mara F. Prada; Sergio S. Urzua
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).
Keywords: No keywords provided
JEL Codes: C38; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| mechanical ability (L64) | labor market outcomes (J48) |
| mechanical ability (L64) | likelihood of attending four-year college (I23) |
| high mechanical ability and low cognitive and socioemotional ability (D29) | not attending college (D29) |
| not attending college (D29) | highest expected hourly wage (J39) |