We test whether household non-durable consumption and in years of schooling are related, by exploiting a university reform that mostly changes the marginal costs of educational investment. The empirical results suggest that education is a production rather than a normal consumption good, producing mainly potential life-time gains. This finding implies that such reform which achieves its goal, not only positively affects the individuals’ human capital accumulation process but it also has the unintended positive effect to moderately boost consumption.

Investment in education and household consumption

D. Sonedda
2018-01-01

Abstract

We test whether household non-durable consumption and in years of schooling are related, by exploiting a university reform that mostly changes the marginal costs of educational investment. The empirical results suggest that education is a production rather than a normal consumption good, producing mainly potential life-time gains. This finding implies that such reform which achieves its goal, not only positively affects the individuals’ human capital accumulation process but it also has the unintended positive effect to moderately boost consumption.
2018
978-88-9386-069-7
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11383/2140589
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