Fabien Petit*, Florian Guibelin**

phd seminar

Fabien Petit*, Florian Guibelin**

Transmission and consistency of values along the individuals' life-cycle*
Switching from unemployment benefits to universal basic income, what impacts on educational choices?**
Tuesday, February 16 2021| 11:00am to 12:30pm

Anushka Chawla: anushka.chawla[at]univ-amu.fr
Kenza Elass: kenza.elass[at]univ-amu.fr
Carolina Ulloa Suarez: carolina.ulloa-suarez[at]univ-amu.fr


*Values have been shown to influence socio-economic choices of individuals. This paper focuses on the resilience of values all along the life-cycle. Values are multidimensional and subject to change due to life events. These events can change values directly, but also indirectly through spillover effects because values are interdependent and therefore must be consistent with each other. In this context, I build a theoretical framework to jointly analyze values and life events dynamics. I use UK cohort data with measures of values at several ages. Relying on activity histories, I quantify the impact of several life events, such as unemployment, divorce, having a child, on a set of values. Empirical results suggest that values do change over the life-cycle, are linked to each other and that spillover effects do appear in some contexts.

**The aim of this work is to envisage how a change in social protection system could affect educational choices of people at the end of the mandatory schooling period. Especially, I focus on comparing two different social protection systems : one with Unemployment Benefits (UB), only people looking for a job receive a given allocation, and the other with Universal Basic Income (BI), everyone receive a same allocation. In this setting, frictions on labor market cause unemployment. Individuals are heterogenous in two dimensions : their post-schooling skills and the wealth their parents can spend in their study. At the end of their compulsory education, individuals can choose between going on the labor market or keeping studying. If the second option is chosen, agents will maximise their expected utility choosing the time and the money they spend to acquire new level of skills. Then they will enter on the labor market. If they don’t study, people will directly look for a job with their post-schooling skills.

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