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Measuring the Consumption Value of Higher Education Author info | Abstract | Publisher info | Download info | Related research | Statistics Annette Alstadsæter ()
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This paper argues that the consumption value of education is an important motivation for the educational choice. While controlling for ability, we document that individuals are willing to forego substantial future wage returns in order to acquire a particular type of higher education. We document that the individuals who attended Teachers’ College in Norway during the 1960's had an ex ante willingness to pay for the consumption value of this educational type of at least 34% of the present value of expected potential lifetime income. The ex post price for this consumption value turned out to be 39% of their potential lifetime income.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 2799.
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Date of creation: 2009Date of revision:
Handle: RePEc:ces:ceswps:_2799Contact details of provider: Postal: Poschingerstrasse 5, 81679 Munich Phone: +49 (89) 9224-0 Fax: +49 (89) 985369 Web page: http://www.cesifo.de
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Keywords: educational choice ; type of education ; non-pecuniary return ; willingness to pay ; consumption value of education ; Other versions of this item:
Find related papers by JEL classification: H89 - Public Economics - - Miscellaneous Issues - - - Other I21 - Health, Education, and Welfare - - Education - - - Analysis of Education J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
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Robert Dur & Amihai Glazer, 2005.
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Tinbergen Institute Discussion Papers
05-010/1, Tinbergen Institute, revised 29 Aug 2007.
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Other versions:
Robert A. J. Dur & Amihai Glazer, 2005.
"Subsidizing Enjoyable Education ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!] Dur, Robert & Glazer, Amihai, 2008.
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