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have had difficulty replicating the UK results using the code I provided in a data appendix. 1 Through these discussions I learned that a few sampling restrictions that were mentioned in the paper were not in the code, and that some datasets were not merged correctly (for example, individuals were matched based on person and household identifiers, but not family identifiers). The British earnings measure for 1994 was also accidentally dropped. This corrigendum therefore updates the code for producing a revised set of UK results which are qualitatively similar to the original results. The revised output does not affect the discussion or conclusions of the original article. One of the primary ideas behind the original article is that the remarkably large response from changes to compulsory schooling laws in the UK provides a rare 1 I thank Paul Devereux, Heather Royer, Joseph Shapiro, and Raymond Guiteras for pointing me to these mistakes. I am a strong supporter of making available code for replication purposes, and I am grateful that these errors were identified using the paper’s data appendix. Part of the difficulty reconciling the results

I explore the effects of education on nonmarket outcomes from both theoretical and empirical perspectives. Examples of outcomes considered include general consumption patterns at a moment in time, savings and the rate of growth of consumption over time, own (adult) health and inputs into the production of own health, fertility, and child quality or well-being reflected by their health and cognitive development. I pay a good deal of attention to the effects of education on health because they are the two most important sources of human capital: knowledge capital and health capital. There is a large literature addressing the nature of their complementarities. In the conceptual foundation section, I consider models in which education has productive efficiency and allocative efficiency effects. I then modify these frameworks to allow for the endogenous nature of schooling decisions, so that observed schooling effects can be traced in part to omitted "third variables " such as an orientation towards the future. An additional complication is that schooling may contribute to a future orientation. The empirical review provides a good deal of evidence for the proposition that the education effects are causal but is less conclusive with regard to the identification of specific mechanisms.

Masten provided excellent research assistance.

This article investigates whether increasing mandatory educational attainment through compulsory schooling legislation encourages women to delay childbearing. We use variation induced by changes in compulsory schooling laws in both the US and Norway to estimate the effect in two very different institutional environments. We find evidence that increased compulsory schooling does in fact reduce the incidence of teenage childbearing in both the US and Norway, and these estimates are quite robust to various specification checks. These results suggest that legislation aimed at improving educational outcomes may have spillover effects onto the fertility decisions of teenagers. Research suggests that teenage childbearing adversely affects women’s economic out-comes such as the level of completed schooling, labour market participation and wages.1 Given these deleterious consequences, it is important to understand what factors contribute to this decision. We know that low-educated women are more likely to have a teenage birth but does this imply that policies that increase educational attainment reduce early fertility? In particular, would increasing mandatory educa-tional attainment (through compulsory schooling legislation) encourage women to delay childbearing? If compulsory schooling reduces harmful or risky behaviour,

Using administrative, longitudinal data on felony arrests in Florida, we exploit the discontinuous increase in the punitiveness of criminal sanctions at 18 to estimate the deterrence effect of incarceration. Our analysis suggests a 2 percent decline in the log-odds of offending at 18, with standard errors ruling out declines of 11 percent or more. We interpret these magnitudes using a stochastic dynamic extension of Becker’s (1968) model of criminal behavior. Calibrating the model to match key empirical moments, we conclude that deterrence elasticities with respect to sentence lengths are no more negative than-0.13 for young offenders.

I would like to thank seminar participants at the PIER-IER Conference on Crime and Public Policy for their comments. Betsy Caucutt, Antonio Merlo, Chris Taber, and an anonymous referee also offered useful advice and comments. This paper is the result of countless discussions with many others over the past few years on the general topics of human capital and crime. The views expressed herein are those of the author(s) and not

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The exact cause of the massive defaults and foreclosures in the U.S. subprime mortgage market is still unclear. This paper investigates whether a particular aspect of borrowers ’ financial literacy, their numerical ability, may have played a role. We measure several aspects of financial literacy and cognitive ability in a survey of subprime mortgage borrowers who took out mortgages in 2006 and 2007, and match these measures to objective data on mortgage characteristics and repayment performance. We find a large and statistically significant negative correlation between numerical ability and various measures of delinquency and default. Foreclosure starts are approximately two-thirds lower in the group with the highest measured level of numerical ability compared to the group with the lowest measured level. The result is robust to controlling for a broad set of socio-demographic variables and is not driven by other aspects of cognitive ability, or the characteristics of the mortgage contracts. Our results raise the possibility that limitations in certain aspects of financial literacy played an important role in the subprime mortgage crisis.