Easy-Come-Easy-Go: Moral Hazard in the Context of Return to Education
This empirical study advances the understanding of the theory of investment in human capital by outlining limitations to its applicability in the context of return to education. The study uses the concept of moral hazard to examine circumstances when financial support for education purpose generates less desirable post-graduation incomes. This study explores the relationship between financial support and post-graduation incomes using data from the Survey of Income and Program Participation that is designed to measure the economic situation of individuals. Results suggest that students are less likely to engage in moral hazardous behavior to the degree to which they are older and to the degree to which they receive costlier financial assistance. Copyright Springer Science+Business Media Dordrecht 2014
Volume (Year): 120 (2014)
Issue (Month): 2 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/social+sciences/applied+ethics/journal/10551/PS2|
References listed on IDEAS
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.:
- Robert J. Willis & Sherwin Rosen, 1978.
"Education and Self-Selection,"
NBER Working Papers
0249, National Bureau of Economic Research, Inc.
- Maria Racionero & Elena Del Rey, 2006.
"Financing schemes for higher education,"
ANU Working Papers in Economics and Econometrics
2006-460, Australian National University, College of Business and Economics, School of Economics.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9-9.
- Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512.
- Hogan, Vincent & Walker, Ian, 2007.
"Education choice under uncertainty: Implications for public policy,"
Elsevier, vol. 14(6), pages 894-912, December.
- Vincent (Vincent Peter) Hogan & Ian Walker, 2006. "Education choice under uncertainty : implications for public policy," Working Papers 200615, School of Economics, University College Dublin.
- Darvish-Lecker, Tikva & Kahana, Nava, 1990. "Study-Grant Schemes and Effort: An Economic Model," Bulletin of Economic Research, Wiley Blackwell, vol. 42(3), pages 229-39, July.
- Miller, Paul & Mulvey, Charles & Martin, Nick, 2006. "The return to schooling: Estimates from a sample of young Australian twins," Labour Economics, Elsevier, vol. 13(5), pages 571-587, October.
- Gary D. Hansen & Ayse Imrohoroglu, 1990.
"The Role of Unemployment Insurance in an Economy with Liquidity Constraints and Moral Hazard,"
UCLA Economics Working Papers
583, UCLA Department of Economics.
- Hansen, Gary D & Imrohoroglu, Ayse, 1992. "The Role of Unemployment Insurance in an Economy with Liquidity Constraints and Moral Hazard," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 118-142, February.
- Hansen, G.D. & Imrohoroglu, A., 1990. "The Role Of Unemployment Insurance In An Economy With Liquidity Constraints And Moral Hazard," Papers 21, California Los Angeles - Applied Econometrics.
- Leigh, Andrew & Ryan, Chris, 2008.
"Estimating returns to education using different natural experiment techniques,"
Economics of Education Review,
Elsevier, vol. 27(2), pages 149-160, April.
- Andrew Leigh & Chris Ryan, 2005. "Estimating Returns to Education: Three Natural Experiment Techniques Compared," CEPR Discussion Papers 493, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Diamond, Douglas W & Dybvig, Philip H, 1983.
"Bank Runs, Deposit Insurance, and Liquidity,"
Journal of Political Economy,
University of Chicago Press, vol. 91(3), pages 401-419, June.
- Vogel, Jonathan, 2007. "Institutions and moral hazard in open economies," Journal of International Economics, Elsevier, vol. 71(2), pages 495-514, April.
- Alessandro Cigno & Annalisa Luporini, 2003.
"Scholarships or Student Loans? Subsidizing Higher Education in the Presence of Moral Hazard,"
CESifo Working Paper Series
973, CESifo Group Munich.
- Alessandro Cigno & Annalisa Luporini, 2009. "Scholarships or Student Loans? Subsidizing Higher Education in the Presence of Moral Hazard," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(1), pages 55-87, 02.
- Bodvarsson, Orn B. & Walker, Rosemary L., 2004. "Do parental cash transfers weaken performance in college?," Economics of Education Review, Elsevier, vol. 23(5), pages 483-495, October.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Johnson, Richard W & Neumark, David, 1996. "Wage Declines among Older Men," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 740-48, November.
- Van Long, Ngo & Shimomura, Koji, 1999.
"Education, moral hazard, and endogenous growth,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 23(5-6), pages 675-698, April.
- Neumark, David & Taubman, Paul, 1995.
"Why Do Wage Profiles Slope Upward? Tests of the General Human Capital Model,"
Journal of Labor Economics,
University of Chicago Press, vol. 13(4), pages 736-61, October.
- David Neumark & Paul Taubman, 1994. "Why Do Wage Profiles Slope Upwards? Tests of the General Human Capital Model," NBER Working Papers 4688, National Bureau of Economic Research, Inc.
- Lazear, Edward P, 1976.
"Age, Experience, and Wage Growth,"
American Economic Review,
American Economic Association, vol. 66(4), pages 548-58, September.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, 08.
- Mark V. Pauly, 1974. "Overinsurance and Public Provision of Insurance: The Roles of Moral Hazard and Adverse Selection," The Quarterly Journal of Economics, Oxford University Press, vol. 88(1), pages 44-62.
When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:120:y:2014:i:2:p:201-217. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.