ABSTRACT
Educational characteristics are highly correlated with labour market outcomes. This is reflected in the Norwegian microsimulation model MOSART1 where education is an important factor in explaining the behaviour of the individuals in the labour market and other outcomes through life. Educational background affects several events over the lifecycle in this model. It is a factor in deciding the individual risk of unemployment and disability, as well as life expectancy. The model does not distinguish the self selection mechanism from the causal effect of education on later demographic and labour market outcomes. Only the correlations between educational choices and later outcomes are included in the model, and this can be interpreted as a combination of the self selection-mechanism and a causal relationship.
