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α: calibrated so average coauthorship-adjusted count equals average raw count
I study how education affects the allocation of talent into different sectors of the economy. I focus on two forces. First, education adds to a worker's information capital and, thus, may change her self-confidence. Second, performance contracts give a worker incentives to choose a sector according to her abilities. The baseline model predicts that workers with intermediate ability educate, while the most able skip education. In an extension, I compare the U.K. and the U.S. bachelor's degrees and, moreover, discuss hybrid educational systems, common in Europe, that offer both U.K. and U.S. types of bachelor's degrees.