We begin with the simplifying assumption that the individual has only one opportunity to enter business school at period t = k. 23 We further focus attention on full-time students. At t = k−1, an individual chooses whether or not to enter business school in the next period k. There is a cost to attending business school, ci + ηik, which is assumed to be observed by the individual at the time of the decision. The first term, ci, denotes the individual-specific costs that can be measured by the econometrician (., a person who has demonstrated low academic performance in the past may find business school more.
