Abstract
AbstractInvestigating interaction of the lumpy nature of educational investments and informational frictions on returns to and costs of education, I show that pessimistic beliefs can be self-confirmed in equilibrium. Among some of its consequences, I argue that the commonly pursued research methods may not always identify the true underlying skill distributions.
Publisher
Springer Science and Business Media LLC
Subject
Organizational Behavior and Human Resource Management,General Economics, Econometrics and Finance,Sociology and Political Science
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