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Risk and career choice: Evidence from Turkey

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  • Caner, Asena
  • Okten, Cagla

Abstract

In this paper, we examine the college major choice decision in a risk and return framework using university entrance exam data from Turkey. Specifically we focus on the choice between majors with low income risk such as education and health and others with riskier income streams. We use a unique dataset that allows us to control for the choice set of students and parental attitudes towards risk. Our results show that father's income, self-employment status and social security status are important factors influencing an individual in choosing a riskier career such as business over a less risky one such as education or health.

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  • Caner, Asena & Okten, Cagla, 2010. "Risk and career choice: Evidence from Turkey," Economics of Education Review, Elsevier, vol. 29(6), pages 1060-1075, December.
    • Handle: RePEc:eee:ecoedu:v:29:y:2010:i:6:p:1060-1075
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    1. Salvatore Lo Bello & Iacopo Morchio, 2022. "Like father, like son: Occupational choice, intergenerational persistence and misallocation," Quantitative Economics, Econometric Society, vol. 13(2), pages 629-679, May.
    2. Caner, Asena & Demirel-Derebasoglu, Merve & Okten, Cagla, 2019. "Attainment and Gender Equality in Higher Education: Evidence from a Large Scale Expansion," IZA Discussion Papers 12711, Institute of Labor Economics (IZA).
    3. Goldbach, Stefan, 2012. "Innovation and Education: Is there a 'Nerd Effect'?," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62307, Verein für Socialpolitik / German Economic Association.
    4. Di Paolo, Antonio & Tansel, Aysit, 2017. "Analyzing Wage Differentials by Fields of Study: Evidence from Turkey," GLO Discussion Paper Series 91, Global Labor Organization (GLO).
    5. Fouarge, Didier & Kriechel, Ben & Dohmen, Thomas, 2014. "Occupational sorting of school graduates: The role of economic preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 335-351.
    6. Maestri, Virginia, 2013. "Promoting scientific faculties: Does it work? Evidence from Italy," Economics of Education Review, Elsevier, vol. 32(C), pages 168-180.
    7. Di Paolo, Antonio & Tansel, Aysit, 2017. "Analyzing Wage Differentials by Fields of Study: Evidence from Turkey," GLO Discussion Paper Series 91, Global Labor Organization (GLO).
    8. Ruder, Alexander I. & Van Noy, Michelle, 2017. "Knowledge of earnings risk and major choice: Evidence from an information experiment," Economics of Education Review, Elsevier, vol. 57(C), pages 80-90.
    9. De Paola, Maria & Gioia, Francesca, 2013. "Does Patience Matter for Marriage Stability? Some Evidence from Italy," IZA Discussion Papers 7769, Institute of Labor Economics (IZA).
    10. Ze Chen & Yuan Wang & Yanjun Guan & Michael Jie Guo & Rong Xu, 2023. "Long‐term effect of childhood pandemic experience on medical major choice: Evidence from the 2003 severe acute respiratory syndrome outbreak in China," Health Economics, John Wiley & Sons, Ltd., vol. 32(5), pages 1120-1147, May.
    11. Elena Lagomarsino & Alessandro Spiganti, 2023. "Risk Aversion and the Size of Desired Debt," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 369-396, March.
    12. Maria De Paola & Francesca Gioia, 2011. "Risk Aversion And Major Choice: Evidence From Italian Students," Working Papers 201107, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    13. Verena Jung & Sascha L. Schmidt & Benno Torgler, "undated". "Antecedents of Attitudes Towards Risky Career Choices," School of Economics and Finance Discussion Papers and Working Papers Series 297, School of Economics and Finance, Queensland University of Technology.
    14. Frisancho, Veronica & Krishna, Kala & Lychagin, Sergey & Yavas, Cemile, 2016. "Better luck next time: Learning through retaking," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 120-135.
    15. Caner, Asena & Okten, Cagla, 2013. "Higher education in Turkey: Subsidizing the rich or the poor?," Economics of Education Review, Elsevier, vol. 35(C), pages 75-92.
    16. Francesca Gioia, 2017. "Peer effects on risk behaviour: the importance of group identity," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 100-129, March.
    17. Kala Krishna & Sergey Lychagin & Veronica Frisancho, 2018. "Retaking In High Stakes Exams: Is Less More?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 449-477, May.
    18. Francesca Gioia, 2019. "Incentive schemes and peer effects on risk behaviour: an experiment," Theory and Decision, Springer, vol. 87(4), pages 473-495, November.
    19. Maria Paola & Francesca Gioia, 2017. "Does patience matter in marriage stability? Some evidence from Italy," Review of Economics of the Household, Springer, vol. 15(2), pages 549-577, June.
    20. Sascha L. Schmidt & Benno Torgler & Verena Jung, 2017. "Perceived trade-off between education and sports career: evidence from professional football," Applied Economics, Taylor & Francis Journals, vol. 49(29), pages 2829-2850, June.

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