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Is earnings uncertainty relevant for educational choice? An empirical analysis for China

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  • Joop Hartog
  • Xiaohao Ding
  • Juan Liao

Abstract

We use the method of Dominitz and Manski [1996. Eliciting student expectations of the return to schooling. Journal of Human Resources 31, no. 1: 1-26] to solicit anticipated wage distributions for continuing to a master degree or going to work after completing the bachelor degree. The means of the distributions have an effect on intention to continue as predicted by theory. The dispersions in these individual distributions have no effect on intention to continue, suggesting that anticipated earnings risk does not play a role in the decision.

Suggested Citation

  • Joop Hartog & Xiaohao Ding & Juan Liao, 2014. "Is earnings uncertainty relevant for educational choice? An empirical analysis for China," Education Economics, Taylor & Francis Journals, vol. 22(5), pages 471-483, October.
    • Handle: RePEc:taf:edecon:v:22:y:2014:i:5:p:471-483
    DOI: 10.1080/09645292.2012.688580
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    Cited by:

    1. Katja Seidel, 2021. "The transition from School to Post-Secondary Education – What factors affect educational decisions?," Working Paper Series in Economics 398, University of Lüneburg, Institute of Economics.
    2. Pamela Giustinelli, 2022. "Expectations in Education: Framework, Elicitation, and Evidence," Working Papers 2022-026, Human Capital and Economic Opportunity Working Group.
    3. Balogh, Gábor & Sipos, Norbert, 2019. "Pályakezdő közgazdászok bére a szakdiverzifikáció függvényében [Programme diversification effects on the salaries of freshly graduated economists]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 551-577.
    4. Koşar, Gizem & van der Klaauw, Wilbert, 2023. "Workers' Perceptions of Earnings Growth and Employment Risk," IZA Discussion Papers 16013, Institute of Labor Economics (IZA).
    5. Schweri, Juerg & Hartog, Joop, 2017. "Do wage expectations predict college enrollment? Evidence from healthcare," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 135-150.

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