Brodaty, Thomas; Gary-Bobo, Robert J.; Prieto, Ana - In: Journal of Public Economics 117 (2014) C, pp. 125-148
We study a model in which a student's investment in education maximizes expected utility conditional on public and … private information. The model takes future wage risk into account and treats the direct and opportunity costs of education as … individual education choices. The risk affecting education costs and, in particular, the randomness of time-to-degree, also plays …