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The Non-Market Benefits of Education and Ability

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  • James J. Heckman
  • John Eric Humphries
  • Gregory Veramendi

Abstract

This paper analyzes the non-market benefits of education and ability. Using a dynamic model of educational choice we estimate returns to education that account for selection bias and sorting on gains. We investigate a range of non-market outcomes including incarceration, mental health, voter participation, trust, and participation in welfare. We find distinct patterns of returns that depend on the levels of schooling and ability. Unlike the monetary benefits of education, the benefits to education for many non-market outcomes are greater for low-ability persons. College graduation decreases welfare use, lowers depression, and raises self-esteem more for less-able individuals.

Suggested Citation

  • James J. Heckman & John Eric Humphries & Gregory Veramendi, 2017. "The Non-Market Benefits of Education and Ability," NBER Working Papers 23896, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:23896
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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