Scandinavian Working Papers in Economics

LiU Working Papers in Economics,
Linköping University, Division of Economics, Department of Management and Engineering

No 4: Learning For Life? The Effects of Schooling on Earnings and Health- Related Behavior Over the Life Cycle

Elisabeth Lång () and Paul Nystedt ()
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Elisabeth Lång: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden
Paul Nystedt: Jönköping University

Abstract: We analyze how education is associated with earnings and health-related behaviors (HRBs) over the adult life cycle using a sample of 18,000 twins. The underlying motive is to improve the understanding of to what extent schooling may contribute to increased human welfare over time and age through the intermediaries of earnings and HRBs. We find that one additional year of schooling is associated with around 5-6 percent higher earnings at ages 35-75 and generally improved HRBs for both men and women. Much of the estimated relationships between schooling, earnings and HRBs can be traced back to genetic inheritance. Controlling for such inheritance, the remaining education-earnings premium is non-linear and increasing with educational level, and the education premium in HRBs is mainly concentrated to smoking habits.

Keywords: Schooling; Education; Health-Related Behavior; Life-Cycle

JEL-codes: J01

57 pages, December 15, 2016

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