What shapes our opportunities?

erika povea
The opportunities available to us depend on more than our abilities and individual choices. Erika T. Povea examines how family, local communities and institutions shape educational and economic outcomes. She will defend her PhD thesis at NHH on 26 August.
PhD Defense

12 August 2026 11:37

What shapes our opportunities?

On Wednesday 26 August Erika T. Povea will hold a trial lecture on a prescribed topic and defend her thesis for the PhD degree at NHH.

Title of the thesis 

«Essays on Economics of Education and Social Mobility» 

Education is often seen as one of the main ways societies can promote economic opportunity and social mobility. But access to education alone does not guarantee equal opportunities. The environments in which children grow up, the institutions that determine access to education, and families’ economic circumstances can shape educational choices and later outcomes.

This thesis consists of three essays examining how opportunities are created or constrained in various contexts across the world.

The first essay studies the consequences of organized crime in Ecuador. It shows that organized crime increases school dropout among younger students and is associated with higher risks for young people outside school, including homicides among boys and earlier pregnancies among girls. Household income also falls substantially. While previous research has emphasized that criminal environments may draw students away from school by creating outside options, this study shows that organized crime can also worsen local economic conditions and make it harder for financially constrained families to keep children in education. 

The second essay examines Colombia’s national college entrance exam and shows that even small features of test design can influence access to higher education. Students are less likely to answer correctly when the correct option appears last. Although small at the question level, this disadvantage affects overall scores and can influence which universities and programs students enter. The findings show that seemingly objective testing systems can contain hidden sources of disadvantage. 

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The third essay studies earnings inequality among siblings in Norway. It shows that declining earnings inequality is largely driven by siblings becoming more similar, particularly in families with daughters. The main explanation is women’s increased participation in the labor market, especially full-time employment, rather than convergence in education alone.

Together, the essays show that economic opportunity is shaped not only by individual ability and choices, but also by local environments, institutional rules, and changes within families. 

Prescribed topic for the trial lecture: 

The relationship between crime and human capital: Insights from Becker's theory and related empirical findings   

Trial lecture 

Karl Borch Aud, 10:15 

Defense: 

Karl Borch Aud, 12:15 

Members of the evaluation committee: 

Associate Professor Björn Rolf Brey (chair of the committee), Department of Economics, NHH 

Associate Professor Petra Thiemann, Lund University 

Associate Professor Nadine Ketel, Vrije Universiteit Amsterdam, School of Business and Economics 

Supervisors:  

Professor Aline Bütikofer (main supervisor), Department of Economics, NHH 

Professor Katrine V. Løken, Department of Economics, NHH  

The trial lecture and thesis defense will be open to the public. 

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