%0 Report
        %A Cunha, Flavio
%A Heckman, James J.
%A Navarro, Salvador
        %T Separating Uncertainty from Heterogeneity in Life Cycle Earnings
        %D 2004
        %8 2004 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1437
        %U https://www.iza.org/publications/dp1437
        %X This paper develops and applies a method for decomposing cross section variability of earnings into components that are forecastable at the time students decide to go to college (heterogeneity) and components that are unforecastable. About 60% of variability in returns to schooling is forecastable. This has important implications for using measured variability to price risk and predict college attendance.
        %K counterfactuals
%K uncertainty
%K lifecycle earnings
%K schooling
%K heterogeneity