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Education increases patience: Evidence from a change in a compulsory schooling law

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  • Kunt Šimunović, Pınar

Abstract

I investigate the causal effect of education on time preferences. To deal with the endogeneity of education, I exploit exogenous variation in education imposed by a Turkish school reform that raised compulsory education from five to eight years. I find that education causes individuals to make more patient inter-temporal choices but does not induce them to report being more patient. I also provide evidence that the effect of education on patient inter-temporal choices does not operate through changes in financial well-being.

Suggested Citation

  • Kunt Šimunović, Pınar, 2024. "Education increases patience: Evidence from a change in a compulsory schooling law," Economics & Human Biology, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:ehbiol:v:53:y:2024:i:c:s1570677x24000273
    DOI: 10.1016/j.ehb.2024.101375
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    Keywords

    Time preference; education; compulsory schooling;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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