Working Paper: NBER ID: w23896
Authors: James J. Heckman; John Eric Humphries; Gregory Veramendi
Abstract: This paper analyzes the non-market benefits of education and ability. Using a dynamic model of educational choice we estimate returns to education that account for selection bias and sorting on gains. We investigate a range of non-market outcomes including incarceration, mental health, voter participation, trust, and participation in welfare. We find distinct patterns of returns that depend on the levels of schooling and ability. Unlike the monetary benefits of education, the benefits to education for many non-market outcomes are greater for low-ability persons. College graduation decreases welfare use, lowers depression, and raises self-esteem more for less-able individuals.
Keywords: No keywords provided
JEL Codes: D01; I14; I24; I26; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| education (I29) | nonmarket outcomes (P42) |
| college graduation (I23) | welfare use (I38) |
| college graduation (I23) | depression (E32) |
| college graduation (I23) | self-esteem (I31) |
| education (I29) | mental health (I12) |
| education (I29) | reliance on welfare (I38) |
| nonmarket returns to education (I26) | ability levels (I24) |
| cognitive and socioemotional endowments (D91) | incarceration (K14) |
| cognitive and socioemotional endowments (D91) | welfare use (I38) |
| cognitive and socioemotional endowments (D91) | voting participation (K16) |
| cognitive and socioemotional endowments (D91) | trust in others (Z13) |