Université de Lausanne
Faculté des
HEC
Département d'économétrie
et d'économie politique
Cahier de recherches économiques du DEEP No. 09.02
Luís Santos-Pinto
April 2006
Abstract
This paper incorporates egocentric comparisons into
a human capital accumulation model and studies the evolution of positive self
image over time. The paper shows that the process of human capital accumulation
together with egocentric comparisons imply that positive self image of a cohort
is first increasing and then decreasing over time. Additionally, the paper finds
that positive self image: (1) peaks earlier in activities where skill depreciation
is higher, (2) is smaller in activities where the distribution of income is
more dispersed, (3) is not a stable characteristic of an individual, and (4)
is higher for more patient individuals.
Keywords: self-image; human capital; skill investment
JEL classification: D31; D91; J24