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

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

Authors

Lorenzo Guarcello

Furio Camillo Rosati



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