The Non-Market Benefits of Abilities and Education
Journal of Human Capital, (2018), 12:2, 282-304, joint with J.J. Heckman and J. E. Humphries.
NBER Working Paper No. 23896, 2017

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.


Heckman, James J., John Eric Humphries, and Gregory Veramendi (2018): "The Non-Market Benefits of Abilities and Education," Journal of Human Capital, 2018, 12:2, 282-304.

Last modified 6/2018