IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v16y2002i4p417-433.html
   My bibliography  Save this article

Expected Life-earnings Paths with and without Higher Education: The case of India

Author

Listed:
  • Autar Dhesi

Abstract

The paper analyses students' expectations of earnings with and without higher education at three career points: at entry to the labour force, at the five year point, and career peak, constructing paths of expected earnings. The estimated expected internal rates of return to investment in different types of higher education are quite high. Considering ratios of expected peak-year to entry earnings, the highest gradient is in the case of specialised/professional education. Similarly for the case of students of urban origin as compared with those of semi-urban or rural origin. Likewise, the gradient is relatively high in the case of students with an English medium of study compared with the case of students with Punjabi or Hindi. As expected, the gradient is higher for those who aspire to higher education than those who do not, in all three types of higher education. The association between expected peak earnings and the proportion of gains in earnings that take place in the first five years is negative in all cases; only expectations of sustained growth in earnings lead to the highest predicted peak earnings levels. The regression results suggest that socio-economic background, social capital, ability, and school-related variables significantly influence the formation of expectations about earnings.

Suggested Citation

  • Autar Dhesi, 2002. "Expected Life-earnings Paths with and without Higher Education: The case of India," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(4), pages 417-433.
    • Handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:417-433
    DOI: 10.1080/02692170210161156
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170210161156
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692170210161156?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
    2. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 7-36, October.
    3. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602, Elsevier.
    4. Nickell, Stephen, 1979. "Education and Lifetime Patterns of Unemployment," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 117-131, October.
    5. Douglass C. North, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter.
    6. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 432-456, National Bureau of Economic Research, Inc.
    7. Whitfield, Keith & Wilson, R A, 1991. "Staying on in Full-Time Education: The Education Participation Rate of 16-Year-Olds," Economica, London School of Economics and Political Science, vol. 58(231), pages 391-404, August.
    8. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 111-135, National Bureau of Economic Research, Inc.
    9. Leibowitz, Arleen, 1974. "Home Investments in Children," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 111-131, Part II, .
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael J. Kottelenberg & Steven F. Lehrer, 2019. "How Skills and Parental Valuation of Education Influence Human Capital Acquisition and Early Labor Market Return to Human Capital in Canada," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 735-778.
    2. Jean Luc De Meulemeester & Claude Diebolt, 2004. "The economies of education: unkept promises?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(3-4), pages 303-320.
    3. Kazamaki Ottersten, Eugenia & Mellander, Erik & Meyerson, Eva M. & Nilson, Jörgen, 1994. "Pitfalls in the Measurement of the Return to Education: An Assessment Using Swedish Data," Working Paper Series 414, Research Institute of Industrial Economics.
    4. Rochat, Denis & Demeulemeester, Jean-Luc, 2001. "Rational choice under unequal constraints: the example of Belgian higher education," Economics of Education Review, Elsevier, vol. 20(1), pages 15-26, February.
    5. Carlos Giovanni González Espitia & Jhon James Mora Rodríguez & Cecilia Albert Verdú, 2015. "Corrección del sesgo de selección muestral en la probabilidad de demandar educación universitaria en Colombia," Icesi Economics Working Papers 14567, Universidad Icesi.
    6. M.A. Marais, 1993. "The Consumption Benefits of Education," Economics Discussion / Working Papers 93-06, The University of Western Australia, Department of Economics.
    7. Carlos Giovanni González Espitia, 2016. "Nueva evidencia de la desigualdad de oportunidades en la demanda de educación superior en Colombia: 2000-2015," Investigaciones de Economía de la Educación volume 11, in: José Manuel Cordero Ferrera & Rosa Simancas Rodríguez (ed.), Investigaciones de Economía de la Educación 11, edition 1, volume 11, chapter 0, pages 23-44, Asociación de Economía de la Educación.
    8. Carlos Giovanni González Espitia & Jhon James Mora Rodriguez & Andres Felipe Cuadros Meñaca, 2014. "Características familiares y oportunidades educativas en Colombia: Un análisis por cohortes," Investigaciones de Economía de la Educación volume 9, in: Adela García Aracil & Isabel Neira Gómez (ed.), Investigaciones de Economía de la Educación 9, edition 1, volume 9, chapter 5, pages 143-158, Asociación de Economía de la Educación.
    9. Carlos Giovanni González Espitia & Jhon James Mora Rodríguez & Andrés Felipe Cuadros Meñaca, 2014. "Oportunidades educativas y características familiares en Colombia: un análisis por cohortes," Revista de Economía del Rosario, Universidad del Rosario, June.
    10. de la Croix, David & Gosseries, Axel, 2012. "The natalist bias of pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 271-287.
    11. James J. Heckman, 2015. "Introduction to A Theory of the Allocation of Time by Gary Becker," Economic Journal, Royal Economic Society, vol. 0(583), pages 403-409, March.
    12. Felfe, Christina & Hsin, Amy, 2012. "Maternal work conditions and child development," Economics of Education Review, Elsevier, vol. 31(6), pages 1037-1057.
    13. Garey Ramey & Valerie A. Ramey, 2010. "The Rug Rat Race," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(1 (Spring), pages 129-199.
    14. Sonalde Desai & Omkar Joshi, 2019. "The Paradox of Declining Female Work Participation in an Era of Economic Growth," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(1), pages 55-71, March.
    15. James Berry, 2015. "Child Control in Education Decisions: An Evaluation of Targeted Incentives to Learn in India," Journal of Human Resources, University of Wisconsin Press, vol. 50(4), pages 1051-1080.
    16. Basu, Alaka & Desai, Sonalde, 2016. "Hopes, Dreams and Anxieties: India’s One-Child Families," MPRA Paper 117304, University Library of Munich, Germany.
    17. Muñoz, Katherine, 2023. "El nivel de disfrute durante las actividades de cuidado de hijos: Un análisis utilizando datos de la UKTUS 2014-15 [The level of enjoyment during childcare activities: An analysis using data from U," MPRA Paper 117799, University Library of Munich, Germany.
    18. Nicolas Fleury & Fabrice Gilles, 2015. "A meta-regression analysis on intergenerational transmission of education: publication bias and genuine empirical effect," TEPP Working Paper 2015-02, TEPP.
    19. Rumberger, Russell W., 2010. "Education and the reproduction of economic inequality in the United States: An empirical investigation," Economics of Education Review, Elsevier, vol. 29(2), pages 246-254, April.
    20. Muriel Meunier & Augustin de Coulon & Oscar Marcenaro-Gutierrez & Anna Vignoles, 2013. "A longitudinal analysis of UK second-generation disadvantaged immigrants," Education Economics, Taylor & Francis Journals, vol. 21(2), pages 105-134, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:16:y:2002:i:4:p:417-433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.