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Journal of Labor Economics Vol. 35 No. 4 2017

One Size Does Not Fit All: Multiple Dimensions of Ability, College Attendance, and Earnings

María Fernanda Prada1,2; Sergio Urzua3,2

1 Inter-American Development Bank · 2 University of Maryland, College Park · 3 National Bureau of Economic Research

Abstract

This paper investigates the role of mechanical ability as a determinant of schooling decisions and labor market outcomes. Using a Roy model with multiple unobserved abilities and longitudinal data from NLSY79, we find that this ability has a positive effect on overall earnings. However, in contrast to cognitive and socioemotional abilities, mechanical ability reduces the likelihood of 4-year college attendance. The rationale for this asymmetry comes from its large estimated impact on earnings conditional on not attending a 4-year college. Our findings highlight the importance of moving beyond the one-size-fits-all discourse to offer individuals alternative educational pathways to successful careers.

DOI
10.1086/692477
Volume
35
Issue
4
Pages
953-991
Language
en
Sources
openalex crossref

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