Download This PaperSmoking, Discount Rates, and Returns to Education
University of Linz Working Paper No. 0002
9 Pages Posted: 31 Oct 2000
Date Written: January 2000
Abstract
Individual time preference determines schooling enrollment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Accordingly, we use smoking at age 16 as an instrument for schooling in order to cope with ability bias in a returns to education regression. Doing this for Austrian cross-sectional data, we find no evidence of ability bias.
JEL Classification: I22, J31
Suggested Citation: Suggested Citation
Winter-Ebmer, Rudolf and Fersterer, Josef, Smoking, Discount Rates, and Returns to Education (January 2000). University of Linz Working Paper No. 0002, Available at SSRN: https://ssrn.com/abstract=214848 or http://dx.doi.org/10.2139/ssrn.214848
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