IDEAS home Printed from https://ideas.repec.org/a/bla/labour/v35y2021i2p163-191.html
   My bibliography  Save this article

Uncertain occupational expectations at age 19 and later educational and labour market outcomes

Author

Listed:
  • Jane Greve
  • Morten Saaby
  • Anders Rosdahl
  • Vibeke Tornhøj Christensen

Abstract

Many young people lack clear subjective occupational expectations. A concern is how they will perform later in life. We examine the impact of uncertain expectations at age 19 on education and labour market outcomes at age 30. We use the Programme for International Student Assessment (PISA) 2000 survey conducted on a nationally representative sample of 15‐year‐olds, a follow‐up survey in 2004, and administrative registry data from 2004–2014. We find that uncertain expectations are associated with low educational attainment and weak labour market attachment. This result applies mainly for young men and for young people from low socioeconomic backgrounds.

Suggested Citation

  • Jane Greve & Morten Saaby & Anders Rosdahl & Vibeke Tornhøj Christensen, 2021. "Uncertain occupational expectations at age 19 and later educational and labour market outcomes," LABOUR, CEIS, vol. 35(2), pages 163-191, June.
  • Handle: RePEc:bla:labour:v:35:y:2021:i:2:p:163-191
    DOI: 10.1111/labr.12194
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/labr.12194
    Download Restriction: no

    File URL: https://libkey.io/10.1111/labr.12194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeff Dominitz & Charles F. Manski, 1996. "Eliciting Student Expectations of the Returns to Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 1-26.
    2. Melvin Stephens, 2004. "Job Loss Expectations, Realizations, and Household Consumption Behavior," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 253-269, February.
    3. Francine D. Blau & Marianne A. Ferber, 1991. "Career Plans and Expectations of Young Women and Men: The Earnings Gap and Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 26(4), pages 581-607.
    4. Soobin Kim & Christopher Klager & Barbara Schneider, 2019. "The Effects of Alignment of Educational Expectations and Occupational Aspirations on Labor Market Outcomes: Evidence from NLSY79," The Journal of Higher Education, Taylor & Francis Journals, vol. 90(6), pages 992-1015, November.
    5. Deanna C. Denman & Austin S. Baldwin & Andrea C. Betts & Amy McQueen & Jasmin A. Tiro, 2018. "Reducing “I Don’t Know†Responses and Missing Survey Data: Implications for Measurement," Medical Decision Making, , vol. 38(6), pages 673-682, August.
    6. Anthony Mann & Vanessa Denis & Chris Percy, 2020. "Career ready?: How schools can better prepare young people for working life in the era of COVID-19," OECD Education Working Papers 241, OECD Publishing.
    7. Brown, Sarah & Ortiz-Nuñez, Aurora & Taylor, Karl, 2011. "What will I be when I grow up? An analysis of childhood expectations and career outcomes," Economics of Education Review, Elsevier, vol. 30(3), pages 493-506, June.
    8. Pamela Giustinelli, 2016. "Group Decision Making With Uncertain Outcomes: Unpacking Child–Parent Choice Of The High School Track," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(2), pages 573-602, May.
    9. Wilbert van der Klaauw, 2012. "On the Use of Expectations Data in Estimating Structural Dynamic Choice Models," Journal of Labor Economics, University of Chicago Press, vol. 30(3), pages 521-554.
    10. Yifan Gong & Todd Stinebrickner & Ralph Stinebrickner, 2019. "Uncertainty about future income: Initial beliefs and resolution during college," Quantitative Economics, Econometric Society, vol. 10(2), pages 607-641, May.
    11. Sarah Schmitt-Wilson & Caitlin Faas, 2016. "Alignment of Educational and Occupational Expectations Influences on Young Adult Educational Attainment, Income, and Underemployment," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 1174-1188, November.
    12. Michael D. Hurd & Kathleen McGarry, 2002. "The Predictive Validity of Subjective Probabilities of Survival," Economic Journal, Royal Economic Society, vol. 112(482), pages 966-985, October.
    13. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, September.
    14. Michael D. Hurd & James P. Smith & Julie M. Zissimopoulos, 2004. "The effects of subjective survival on retirement and Social Security claiming," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 761-775.
    15. Juerg Schweri, 2021. "Predicting polytomous career choices in healthcare using probabilistic expectations data," Health Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 544-563, March.
    16. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    17. Pamela Giustinelli & Charles F Manski & Francesca Molinari, 2022. "Precise or Imprecise Probabilities? Evidence from Survey Response Related to Late-Onset Dementia," Journal of the European Economic Association, European Economic Association, vol. 20(1), pages 187-221.
    18. Sinan Gemici & Alice Bednarz & Tom Karmel & Patrick Lim, 2014. "Young People's Aspirations and Their Occupational Outcomes," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(1), pages 124-136, March.
    19. Zhuan Pei & Jörn-Steffen Pischke & Hannes Schwandt, 2019. "Poorly Measured Confounders are More Useful on the Left than on the Right," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 205-216, April.
    20. Pamela Giustinelli & Charles F. Manski & Francesca Molinari, 2019. "Precise or Imprecise Probabilities? Evidence from Survey Response on Late-onset Dementia," NBER Working Papers 26125, National Bureau of Economic Research, Inc.
    21. Pamela Giustinelli & Charles F. Manski, 2018. "Survey Measures Of Family Decision Processes For Econometric Analysis Of Schooling Decisions," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 81-99, January.
    22. Sabates, Ricardo & Gutman, Leslie Morrison & Schoon, Ingrid, 2017. "Is there a wage penalty associated with degree of indecision in career aspirations? Evidence from the BCS70," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(3), pages 290-301.
    23. Peter Arcidiacono & V. Joseph Hotz & Arnaud Maurel & Teresa Romano, 2020. "Ex Ante Returns and Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 128(12), pages 4475-4522.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pamela Giustinelli, 2022. "Expectations in Education: Framework, Elicitation, and Evidence," Working Papers 2022-026, Human Capital and Economic Opportunity Working Group.
    2. Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2022. "Can perceived returns explain enrollment gaps in postgraduate education?," Labour Economics, Elsevier, vol. 77(C).
    3. Gong, Yifan & Stinebrickner, Ralph & Stinebrickner, Todd, 2022. "Marriage, children, and labor supply: Beliefs and outcomes," Journal of Econometrics, Elsevier, vol. 231(1), pages 148-164.
    4. Juerg Schweri, 2021. "Predicting polytomous career choices in healthcare using probabilistic expectations data," Health Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 544-563, March.
    5. Gizem Koşar & Cormac O'Dea, 2022. "Expectations Data in Structural Microeconomic Models," NBER Working Papers 30094, National Bureau of Economic Research, Inc.
    6. Charles F. Manski, 2018. "Survey Measurement of Probabilistic Macroeconomic Expectations: Progress and Promise," NBER Macroeconomics Annual, University of Chicago Press, vol. 32(1), pages 411-471.
    7. Basit Zafar, 2011. "How Do College Students Form Expectations?," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 301-348.
    8. Giustinelli, Pamela & Manski, Charles F. & Molinari, Francesca, 2022. "Tail and center rounding of probabilistic expectations in the Health and Retirement Study," Journal of Econometrics, Elsevier, vol. 231(1), pages 265-281.
    9. Arpita Patnaik & Matthew J. Wiswall & Basit Zafar, 2020. "College Majors," NBER Working Papers 27645, National Bureau of Economic Research, Inc.
    10. Pamela Giustinelli & Matthew D. Shapiro, 2024. "SeaTE: Subjective Ex Ante Treatment Effect of Health on Retirement," American Economic Journal: Applied Economics, American Economic Association, vol. 16(2), pages 278-317, April.
    11. Kristin J. Kleinjans & Jinkook Lee, 2006. "The link between individual expectations and savings: Do nursing home expectations matter?," Economics Working Papers 2006-05, Department of Economics and Business Economics, Aarhus University.
    12. Yifan Gong & Todd Stinebrickner & Ralph Stinebrickner, 2020. "Perceived and actual option values of college enrollment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 940-959, November.
    13. Crossley, Thomas F. & Gong, Yifan & Stinebrickner, Ralph & Stinebrickner, Todd, 2022. "The ex post accuracy of subjective beliefs: A new measure and decomposition," Economics Letters, Elsevier, vol. 210(C).
    14. Kerwin, Jason & Pandey, Divya, 2023. "Navigating Ambiguity: Imprecise Probabilities and the Updating of Disease Risk Beliefs," IZA Discussion Papers 16478, Institute of Labor Economics (IZA).
    15. van Santen, Peter & Alessie, Rob & Kalwij, Adriaan, 2012. "Probabilistic survey questions and incorrect answers: Retirement income replacement rates," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 267-280.
    16. L. Bissonnette & J. de Bresser, 2018. "Eliciting Subjective Survival Curves: Lessons from Partial Identification," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 36(3), pages 505-515, July.
    17. Joan Costa-Font & Cristina Vilaplana-Prieto, 2022. "Biased survival expectations and behaviours: Does domain specific information matter?," Journal of Risk and Uncertainty, Springer, vol. 65(3), pages 285-317, December.
    18. Bruno Arpino & Pierluigi Conzo & Francesco Salustri, 2022. "I am a survivor, keep on surviving: early-life exposure to conflict and subjective survival probabilities in adult life," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 471-517, April.
    19. Conti, G.; & Giustinelli, P.;, 2022. "For Better or Worse? Subjective Expectations and Cost-Benefit Trade-Offs in Health Behavior: An Application to Lockdown Compliance in the United Kingdom," Health, Econometrics and Data Group (HEDG) Working Papers 22/14, HEDG, c/o Department of Economics, University of York.
    20. Adeline Delavande, 2008. "Measuring revisions to subjective expectations," Journal of Risk and Uncertainty, Springer, vol. 36(1), pages 43-82, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:35:y:2021:i:2:p:163-191. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/csrotit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.