More Education, Less Volatility? The Effect of Education on Earnings Volatility over the Life Cycle

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Terms of use: Documents in

The effect of education on poverty: A European perspective

“…These results on the importance of education for labor market-related factors are similar to recent evidence in, e.g., Fischer et al (2016), Brunello et al (2017) and Delaney and Devereux (2019) who studied (lifetime) earnings, pensions, and labor market attachment.…”

The Work-to-School Transition: Job Displacement and Skill Upgrading Among Young High School Dropouts

“…However, certification significantly reduces the volatility of income later in life (column 4, panel A). Such changes are large in magnitude, the income of women displaced post-expansion is 10% less volatile relative to the average among non-displaced workers, and are consistent with prior work emphasizing that education both increases the level of earnings and reduces the volatility of earnings (Delaney and Devereux, 2019).…”

Breadth of university curriculum and labor market outcomes

“…One limitation of our results is that the dataset only contains information on labor market earnings and employment of workers six months after graduation. Yet, there are good reasons to believe that the effect of the university curriculum may vary over a person's life cycle (Delaney and Devereux, 2019). In particular, while reading a narrower portfolio of courses may smooth the initial entry into the labor market by providing individuals with more specialized knowledge and skills to take on specific jobs, these skills may also become obsolete more quickly, especially if there are rapid changes in technology.…”