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The Role of Non-Pecuniary Considerations: Location Decisions of College Graduates from Low Income Backgrounds

Author

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  • Yifan Gong
  • Todd R. Stinebrickner
  • Ralph Stinebrickner
  • Yuxi Yao

Abstract

We examine the initial post-college geographic location decisions of students from hometowns in the Appalachian region that often lack substantial high-skilled job opportunities, focusing on the role of non-pecuniary considerations. Novel survey questions in the spirit of the contingent valuation approach allow us to measure the full non-pecuniary benefits of each relevant geographic location, in dollar equivalents. A new specification test is designed and implemented to provide evidence about the quality of these non-pecuniary measures. Supplementing perceived location choice probabilities and expectations about pecuniary factors with our new non-pecuniary measures allows us to estimate a stylized model of location choice and obtain a comprehensive understanding of the importance of pecuniary and non-pecuniary factors. We also combine the non-pecuniary measures with realized location and earnings outcomes to characterize inequality in overall welfare.

Suggested Citation

  • Yifan Gong & Todd R. Stinebrickner & Ralph Stinebrickner & Yuxi Yao, 2024. "The Role of Non-Pecuniary Considerations: Location Decisions of College Graduates from Low Income Backgrounds," NBER Working Papers 32127, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32127
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    Cited by:

    1. Romuald Meango, 2023. "Identification of Ex Ante Returns Using Elicited Choice Probabilities," Papers 2303.03009, arXiv.org.
    2. Gizem Koşar & Cormac O'Dea, 2022. "Expectations Data in Structural Microeconomic Models," NBER Working Papers 30094, National Bureau of Economic Research, Inc.
    3. Romuald Méango & François Poinas, 2023. "The (Option-) Value of Overstaying," CESifo Working Paper Series 10536, CESifo.
    4. Romauld Méango, 2023. "Identification of ex ante returns using elicited choice probabilities," Economics Series Working Papers 1007, University of Oxford, Department of Economics.
    5. Romuald Meango, 2023. "Using Probabilistic Stated Preference Analyses to Understand Actual Choices," Papers 2307.13966, arXiv.org.

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    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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