- MEA 2024 (March 2024)
- Jyväskylä 2024 (June 2024)
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Nurfatima Jandarova
October 4, 2024
We study how observed individual characteristics afect earnings of individuals. The characteristics we study are individual personality traits (including cognitive ability) and family background. We make use of data providing information on the individual characteristics rather than estimating them as latent variables.
Their contribution may be indirect (facilitating the acquisition of education) or direct (perhaps afecting productivity). We estimate the fraction of these two contributions through regression analysis and structural model, and fnd that the contribution of both pathways is signifcant.
These characteristics may be in part determined endogenously. To estimate the proportion due to original individual characteristics we use measures provided by Polygenic Scores for education years and fuid intelligence. The marginal efects of these scores is signifcant and high. The indirect contribution (operating though acquisition of college) is around one third of the total efect.