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Abramitzky, Ran; Lavy, Victor – National Bureau of Economic Research, 2011
This paper uses a novel dataset to test the important theoretical prediction that the level of investment in schooling is increasing in the rate of return to education. We exploit a unique episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages in different years, resulting in sharp increases in the return…
Descriptors: Evidence, Control Groups, Outcomes of Education, Prediction