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Trapped, Delayed and Handicapped

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  • Sällström, Susanna
  • Sjogren, Anna

Abstract

The dynamics of self-confidence are modelled in an environment where rational individuals optimally choose education and occupations with the aim to acquire productive skills while learning about ability. It is shown how the presence of uninformative options can trap individuals below their potential. Furthermore the trade-off between probability of success and value of skills may induce uncertain individuals to acquire less productive skills on their way to ability intensive occupations. The value of information also induces uncertain individuals to delay labour market entry. The model can also explain differences in perseverance in the face of failure.

Suggested Citation

  • Sällström, Susanna & Sjogren, Anna, 2002. "Trapped, Delayed and Handicapped," CEPR Discussion Papers 3335, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3335
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    Citations

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    Cited by:

    1. Konrad, Kai A., 2003. "Mobilität in mehrstufigen Ausbildungsturnieren [Mobility in Multi-Stage Education Systems]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2003-30, WZB Berlin Social Science Center.
    2. Filippin, Antonio & Paccagnella, Marco, 2012. "Family background, self-confidence and economic outcomes," Economics of Education Review, Elsevier, vol. 31(5), pages 824-834.
    3. Anders Stenberg & Xavier Luna & Olle Westerlund, 2012. "Can adult education delay retirement from the labour market?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 677-696, January.
    4. Stenberg, Anders, 2011. "Using longitudinal data to evaluate publicly provided formal education for low skilled," Economics of Education Review, Elsevier, vol. 30(6), pages 1262-1280.
    5. Iain P. Embrey, 2020. "States of nature and states of mind: a generalized theory of decision-making," Theory and Decision, Springer, vol. 88(1), pages 5-35, February.
    6. Sjögren, Anna & Saez-Marti, Maria, 2004. "On the Timing of Education," Working Paper Series 614, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    Self-confidence; Self-selection; Skill accumulation; Bayesian learning;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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