Education, Decision-making, and Economic Rationality

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Abstract:
This article studies the causal effect of education on decision-making. In 1972 England raised its minimum school-leaving age from 15 to 16 for students born after September 1, 1957. An online survey was conducted with 2,700 individuals born in a 36-month window on either side of this date. Participants made 25 incentivized risk choices that allow us to measure multiple dimensions of decision-making. Despite the policy having effects on education and educational qualifications, we find no effects of the policy on decision-making or decision-making quality.