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Subjective and projected returns to education

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  • Huntington-Klein, Nick

Abstract

There is significant heterogeneity over high school students in the wage and employment rate returns to education. I evaluate this heterogeneity using subjective returns derived from a data set of high school juniors and seniors in Washington State. Variation over observables in projected returns estimated using observed data is uncorrelated with variation in subjective returns elicited by directly asking students about their beliefs. These results mean that returns estimated using observed data are likely a very weak proxy for student beliefs.

Suggested Citation

  • Huntington-Klein, Nick, 2015. "Subjective and projected returns to education," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 10-25.
  • Handle: RePEc:eee:jeborg:v:117:y:2015:i:c:p:10-25
    DOI: 10.1016/j.jebo.2015.05.005
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    References listed on IDEAS

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    Cited by:

    1. Johannes S. Kunz & Kevin E. Staub, 2016. "Subjective completion beliefs and the demand for post-secondary education," ECON - Working Papers 218, Department of Economics - University of Zurich.
    2. repec:eee:jeborg:v:141:y:2017:i:c:p:135-150 is not listed on IDEAS
    3. Huntington-Klein, Nick, 2016. "“(Un)informed College and Major Choice”: Verification in an alternate setting," Economics of Education Review, Elsevier, vol. 53(C), pages 159-163.
    4. Adrian Chadi & Marco de Pinto & Gabriel Schultze, 2017. "Young, Gifted and Lazy? The Role of Ability and Labor Market Prospects in Student Effort Decisions," IAAEU Discussion Papers 201705, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

    More about this item

    Keywords

    Education; Expectations; Returns; Subjective;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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