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A Model of Educational Investment Decisions

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  • Catsiapis, George

Abstract

From a probit model of enrollments, estimates of the expected net present value of post secondary education are developed for a sample of high school graduates, based e xclusively on individual expectations of the relevant costs and benefits at the time of the enrollment decision. The results are very plausible and consistent w ith rate-of-return estimates from studies which rely on ex post income data. Thi s suggests that students have rational expectationsand relatively good informat ion about future employment opportunities and other factors which determine the returns to educational investment. Copyright 1987 by MIT Press.

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  • Catsiapis, George, 1987. "A Model of Educational Investment Decisions," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 33-41, February.
    • Handle: RePEc:tpr:restat:v:69:y:1987:i:1:p:33-41
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    Cited by:

    1. Sandra E. Black & Amir Sufi, 2002. "Who Goes to College? Differential Enrollment by Race and Family Background," NBER Working Papers 9310, National Bureau of Economic Research, Inc.
    2. Díaz Serrano, Lluís & Pérez, Jessica Helen, 2013. "Impact of Duration of Primary Education on School Enrollment, Graduation and Drop-outs: A Cross- Country Analysis," Working Papers 2072/220757, Universitat Rovira i Virgili, Department of Economics.
    3. Carla Sá & Raymond Florax & Piet Rietveld, 2006. "Does Accessibility to Higher Education Matter? Choice Behaviour of High School Graduates in the Netherlands," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(2), pages 155-174.
    4. Laura M. Crispin, 2017. "Extracurricular Participation, “At-Risk” Status, and the High School Dropout Decision," Education Finance and Policy, MIT Press, vol. 12(2), pages 166-196, Spring.
    5. Angelo Antoci & Irene Brunetti & Pierluigi Sacco & Mauro Sodini, 2021. "Student evaluation of teaching, social influence dynamics, and teachers’ choices: An evolutionary model," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 325-348, January.
    6. Light, Audrey, 1995. "Hazard model estimates of the decision to reenroll in school," Labour Economics, Elsevier, vol. 2(4), pages 381-406, December.
    7. Salas, Vania B., 2014. "International Remittances and Human Capital Formation," World Development, Elsevier, vol. 59(C), pages 224-237.
    8. Díaz Serrano, Lluís & Pérez Reynosa, Jessica Helen, 2018. "Impact of Duration of Primary Education on Enrollment in Secondary Education: Panel Data Evidence from Developing Countries," Working Papers 2072/351582, Universitat Rovira i Virgili, Department of Economics.
    9. Angelo Antoci & Irene Brunetti & Pierluigi Sacco & Mauro Sodini, 2017. "Student Evaluation of Teaching (SET), social influence dynamics, and teachers' choices: An evolutionary model," Discussion Papers 2017/225, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    10. Rong Chen & Peter Riley Bahr, 2021. "How Does Undergraduate Debt Affect Graduate School Application and Enrollment?," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(4), pages 528-555, June.
    11. Elliott, William & Choi, Eun Hee & Destin, Mesmin & Kim, Kevin H., 2011. "The age old question, which comes first? A simultaneous test of children's savings and children's college-bound identity," Children and Youth Services Review, Elsevier, vol. 33(7), pages 1101-1111, July.

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