Participation in Higher Education: A Random Parameter Logit Approach with Policy Simulations
AbstractIn this paper we present a theoretical model of higher education participation. We assume that young people that complete upper secondary education are faced with three choices, go to higher education, not go to higher education or go to higher education and work part time. Utilizing the Living in Ireland survey data 1994-2001 we model this choice in an Irish context by variation in costs (direct and indirect), the estimated lifecycle returns and household credit constraints. Using a random parameters logit choice model we find that simulated lifecycle earnings positively impact the educational/labour choices of young individuals in Ireland. This positive relationship is also found to be true for a choice-specific household income variable constructed in the paper. From the random parameters logit estimations we also find that preferences for choices with higher simulated lifecycle earnings and household income vary across individuals. We conduct policy simulations from our estimations and found that increasing student financial aid levels by 10% combined with a slight widening of the income limits for these aids can lead to significant movement away from the decision to not enter higher education.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4163.
Length: 32 pages
Date of creation: May 2009
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-23 (All new papers)
- NEP-DCM-2009-05-23 (Discrete Choice Models)
- NEP-EDU-2009-05-23 (Education)
- NEP-LAB-2009-05-23 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Applied Econometrics, Publishing House "SINERGIA PRESS",
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Lisa Sanbonmatsu & Jeffrey R. Kling & Greg J. Duncan & Jeanne Brooks-Gunn, 2006.
"Neighborhoods and Academic Achievement: Results from the Moving to Opportunity Experiment,"
Journal of Human Resources,
University of Wisconsin Press, vol. 41(4).
- Lisa Sanbonmatsu & Jeffrey R. Kling & Greg J. Duncan & Jeanne Brooks-Gunn, 2006. "Neighborhoods and Academic Achievement: Results from the Moving to Opportunity Experiment," NBER Working Papers 11909, National Bureau of Economic Research, Inc.
- Jeanne Brooks-Gunn & J. Greg Duncan & Jeffrey R. Kling & Lisa Sanbonmatsu, 2004. "Neighborhoods and Academic Achievement: Results From The Moving to Opportunity Experiment," Working Papers 871, Princeton University, Department of Economics, Industrial Relations Section..
- Peter Haan, 2006. "Much ado about nothing: conditional logit vs. random coefficient models for estimating labour supply elasticities," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 251-256.
- Walker, J.R., 1994.
"The Effect of Public Policies on recent Swedish Fertility Behavior,"
9422, Wisconsin Madison - Social Systems.
- Walker, James R, 1995. "The Effect of Public Policies on Recent Swedish Fertility Behavior," Journal of Population Economics, Springer, vol. 8(3), pages 223-51, August.
- James R. Walker, 1994. "The Effect of Public Policies on Recent Swedish Fertility Behavior," Labor and Demography 9410001, EconWPA.
- Robert J. Willis & Sherwin Rosen, 1978.
"Education and Self-Selection,"
NBER Working Papers
0249, National Bureau of Economic Research, Inc.
- Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(5), pages S7-36, October.
- Gustman, Alan L & Steinmeier, Thomas L, 1981. "The Impact of Wages and Unemployment on Youth Enrollment and Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 553-60, November.
- Emer Smyth, 1999. "Educational Inequalities Among School Leavers in Ireland 1979-1994," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 30(3), pages 267-284.
- Arne Risa Hole, 2007. "Fitting mixed logit models by using maximum simulated likelihood," Stata Journal, StataCorp LP, StataCorp LP, vol. 7(3), pages 388-401, September.
- Barrett, Alan & FitzGerald, John & Nolan, Brian, 2002.
"Earnings inequality, returns to education and immigration into Ireland,"
Elsevier, vol. 9(5), pages 665-680, November.
- Barrett, Alan & Fitz Gerald, John & Nolan, Brian, 2000. "Earnings Inequality, Returns to Education and Immigration into Ireland," CEPR Discussion Papers 2493, C.E.P.R. Discussion Papers.
- Barrett, Alan & FitzGerald, John & Nolan, Brian, 2000. "Earnings Inequality, Returns to Education and Immigration into Ireland," IZA Discussion Papers 167, Institute for the Study of Labor (IZA).
- Colm Harmon & Hessel Oosterbeek, 2000. "The Returns to Education: A Review of Evidence, Issues and Deficiencies in the Literature," CEE Discussion Papers 0005, Centre for the Economics of Education, LSE.
- Kathryn Wilson & Barbara Wolfe & Robert Haveman, 2005. "The Role of Expectations in Adolescent Schooling Choices: Do Youths Respond to Economic Incentives?," Economic Inquiry, Western Economic Association International, vol. 43(3), pages 467-492, July.
- Winship C. Fuller & Charles F. Manski & David A. Wise, 1982. "New Evidence on the Economic Determinants of Postsecondary Schooling Choices," Journal of Human Resources, University of Wisconsin Press, vol. 17(4), pages 477-498.
- Stephen V. Cameron & James J. Heckman, 1999. "The Dynamics of Educational Attainment for Blacks, Hispanics, and Whites," NBER Working Papers 7249, National Bureau of Economic Research, Inc.
- Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
- Christopher T. Whelan & Damian F. Hannan, 1999. "Class Inequalities in Educational Attainment among the Adult Population in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 30(3), pages 285-307.
- Dorothy Watson, 2004. "Living in Ireland Survey - Technical Report and Codebook for Data Users," Papers, Economic and Social Research Institute (ESRI) WP163, Economic and Social Research Institute (ESRI).
- Flannery, Darragh & O'Donoghue, Cathal, 2009. "The Determinants of Higher Education Participation in Ireland: A Micro Analysis," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 40(1), pages 73-107.
- Cecilia Albert VerdÃº, 1998. "- Higher Education Demand In Spain: The Influence Of Labour Market Signals And Family Background," Working Papers. Serie EC, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie) 1998-17, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie).
- Card, David, 2001.
"Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems,"
Econometrica, Econometric Society,
Econometric Society, vol. 69(5), pages 1127-60, September.
- David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc.
- Stoikov, Vladimir, 1977. "On Some Models of the Educational Decision," Kyklos, Wiley Blackwell, vol. 30(1), pages 74-87.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Interesting paper on education choice in Ireland
by Kevin Denny in Geary Behaviour Centre on 2009-05-25 14:26:00
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.