Much evidence suggests that having more education leads to higher earnings in the labor market. However, there is little evidence about whether having more education causes employees to experience lower earnings volatility or shelters them from the adverse effects of recessions. We use a large British administrative panel data set to study the impact of the 1972 increase in compulsory schooling on earnings volatility over the life cycle. Our estimates suggest that men exposed to the law change subsequently had lower earnings variability and less procyclical earnings. However, there is little evidence that education affects earnings volatility of older men.

We examine the effect of radiation exposure in utero, resulting from nuclear weapon testing in the 1950s and early 1960s, on long-run outcomes of Norwegian children. Exposure to low-dose radiation, specifically during months 3 and 4 in utero, leads to lower IQ scores for men and lower education attainment and earnings among men and women. Children of persons affected in utero also have lower cognitive scores, suggesting a persistent intergenerational effect of the shock to endowments. Given the lack of awareness about nuclear testing in Norway at this time, our estimates are likely unaffected by avoidance behavior or stress effects.