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Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique

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  • Sam Jones
  • Ricardo Santos
  • Gimelgo Xirinda

Abstract

Inaccurate expectations of future wages are found in many contexts. Yet, existing studies overwhelmingly refer to high-income countries, and there is little evidence regarding the sources of expectational errors. Based on a longitudinal survey of graduates from the six largest universities in Mozambique, we find the gap between expected and realized first earnings are extremely large. Applying a novel decomposition procedure, we find these errors are not driven by incorrect information about labour market returns.

Suggested Citation

  • Sam Jones & Ricardo Santos & Gimelgo Xirinda, 2020. "Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique," WIDER Working Paper Series wp-2020-47, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-47
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    Cited by:

    1. Ricardo Santos & Sam Jones, 2021. "Informed participation: the effects of information treatment on panel non-response," WIDER Working Paper Series wp-2021-140, World Institute for Development Economic Research (UNU-WIDER).
    2. Ines A. Ferreira & Sam Jones & Jorge Mouco & Ricardo Santos, 2021. "The determinants of occupational sorting: Evidence from Mozambique," WIDER Working Paper Series wp-2021-83, World Institute for Development Economic Research (UNU-WIDER).
    3. Jones, Sam & Santos, Ricardo, 2022. "Can information correct optimistic wage expectations? Evidence from Mozambican job-seekers," Journal of Development Economics, Elsevier, vol. 159(C).

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