Uncertainty, Education, and the School-to-Work Transition: Theory and Evidence from Brazil

Guarcello, Lorenzo; Rosati, Furio Camillo; Scaramozzino, Pasquale

Abstract

This paper develops a model of investment in education and school-to-work transition under uncertainty. The main predictions of the model are tested for Brazilian households using PNAD data. Increased uncertainty on labour market outcomes is shown to be associated with higher levels of schooling by young people, consistent with a real options approach to education as an investment.

Citation

Guarcello, L., Rosati, F. C., & Scaramozzino, P. Uncertainty, Education, and the School-to-Work Transition: Theory and Evidence from Brazil

• Working Paper Type: Discussion Paper
• Deposit Date: Feb 26, 2010
• Pages: 1-22
• Publisher URL: https://www.eldis.org/document/A38481