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Cohort size and schooling choice.

C J Flinn

    Journal of Population Economics
    |January 1, 1993
    PubMed
    Summary
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    Larger birth cohorts reduce lifetime wealth, and individuals make minimal schooling adjustments to compensate. This study examines how cohort size impacts schooling and welfare in the U.S. from 1920-1980.

    Area of Science:

    • Economics
    • Demography
    • Sociology

    Background:

    • Cohort size significantly influences economic outcomes and individual decisions.
    • Understanding the interplay between demographic shifts and educational attainment is crucial for economic policy.

    Purpose of the Study:

    • To investigate the impact of cohort size on educational decisions and welfare.
    • To quantify the relationship between cohort size, schooling investments, and lifetime wealth.

    Main Methods:

    • Development of a perfect-foresight overlapping generations model.
    • Calibration of the model using U.S. schooling and wage data (1920-1980).
    • Assessment of lifetime cohort wealth and schooling elasticities concerning cohort size.

    Main Results:

    Keywords:
    AmericasBehaviorCohort AnalysisDecision MakingDeveloped CountriesEconomic FactorsEducationExaminations And DiagnosesIncomeModels, TheoreticalNorth AmericaNorthern AmericaResearch MethodologySizeSocial WelfareSocioeconomic FactorsUnited States

    Related Experiment Videos

    • The equilibrium response of schooling to changes in cohort size is minimal.
    • Adverse effects of larger cohorts on individual wealth are not significantly offset by schooling adjustments.
    • Schooling investments show low elasticity with respect to cohort size.

    Conclusions:

    • Educational attainment does not substantially mitigate the economic disadvantages associated with large birth cohorts.
    • Policy implications for managing demographic fluctuations and their economic consequences.