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The Wage Expectations of European Business and Economics Students

Author

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  • Giorgio Brunello
  • Claudio Lucifora
  • Rudolf Winter-Ebmer

Abstract

Expected earnings and expected returns to education are seen by labor economists as a major determinant of educational attainment. In spite of this, the empirical knowledge about expectations and their formation is scarce. In this paper we report the results of the first systematic study of the wage expectations of European university students. Our data are based on a uniform questionnaire answered by about 3,000 business and economics university students across Europe. We study the determinants of wage expectations and expected employment probabilities, the variability of these expectations and their variation across countries and universities. We also examine the tradeoff between expected starting wages and expected wage growth.

Suggested Citation

  • Giorgio Brunello & Claudio Lucifora & Rudolf Winter-Ebmer, 2004. "The Wage Expectations of European Business and Economics Students," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
  • Handle: RePEc:uwp:jhriss:v:39:y:2004:i:4:p1116-1142
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    References listed on IDEAS

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    Cited by:

    1. Chevalier, Arnaud & Gibbons, Steve & Thorpe, Andy & Snell, Martin & Hoskins, Sherria, 2009. "Students' academic self-perception," Economics of Education Review, Elsevier, vol. 28(6), pages 716-727, December.
    2. Díaz Serrano, Lluís, 2017. "The Reliability of Students’ Earnings Expectations," Working Papers 2072/290760, Universitat Rovira i Virgili, Department of Economics.
    3. Avdic, Daniel & Gartell, Marie, 2011. "The study pace among college students before and after a student aid reform: some Swedish results," Arbetsrapport 2011:7, Institute for Futures Studies.
    4. Brunello, Giorgio & Winter-Ebmer, Rudolf, 2003. "Why do students expect to stay longer in college? Evidence from Europe," Economics Letters, Elsevier, vol. 80(2), pages 247-253, August.
    5. Gabriele BALLARINO & Massimiliano BRATTI, 2006. "Fields of study and graduates’ occupational outcomes in Italy during the 90s. Who won and who lost?," Departmental Working Papers 2006-17, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    6. Romero-Medina, Antonio & Alonso-Borrego, César, 2008. "Students' assessment of higher education in Spain," UC3M Working papers. Economics we084823, Universidad Carlos III de Madrid. Departamento de Economía.
    7. Luis Diaz-Serrano & Joop Hartog & Helena Skyt Nielsen, 2008. "Compensating Wage Differentials for Schooling Risk in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 711-731, December.
    8. Gabriele Ballarino & Massimiliano Bratti, 2009. "Field of Study and University Graduates' Early Employment Outcomes in Italy during 1995-2004," LABOUR, CEIS, vol. 23(3), pages 421-457, September.
    9. Giovanni Abbiati & Carlo Barone, 2015. "Is university education worth the investment? The expectations of upper secondary school seniors and the role of family background," FBK-IRVAPP Working Papers 2015-13, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    10. Ilya Prakhov, 2017. "Determinants of Expected Return on Higher Education in Moscow," Educational Studies, Higher School of Economics, issue 1, pages 25-57.
    11. Floro Ernesto Caroleo & Francesco Pastore, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107-107.
    12. Pfeifer, Gregor & Witte, Stefan, 2014. "Students' Wage Expectations in Germany - New Evidence considering Tax Adjusted Estimates," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100354, Verein für Socialpolitik / German Economic Association.
    13. Uschi Backes-Gellner & Stephan Veen, 2006. "Incentives for Schools, Educational Signals and Labour Market Outcomes," Economics of Education Working Paper Series 0009, University of Zurich, Department of Business Administration (IBW), revised Jun 2006.
    14. Alessandra Casarico & Paola Profeta & Chiara Pronzato, 2012. "On the local labor market determinants of female university enrolment in European regions," Carlo Alberto Notebooks 278, Collegio Carlo Alberto.
    15. 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).
    16. Mazza, Jacopo & van Ophem, Hans & Hartog, Joop, 2013. "Unobserved heterogeneity and risk in wage variance: Does more schooling reduce earnings risk?," Labour Economics, Elsevier, vol. 24(C), pages 323-338.
    17. César Alonso-Borrego & Antonio Romero-Medina, 2016. "Wage Expectations for Higher Education Students in Spain," LABOUR, CEIS, vol. 30(1), pages 1-17, March.
    18. Pekkala Kerr, Sari & Pekkarinen, Tuomas & Sarvimäki, Matti & Uusitalo, Roope, 2015. "Post-Secondary Education and Information on Labor Market Prospects: A Randomized Field Experiment," IZA Discussion Papers 9372, Institute for the Study of Labor (IZA).
    19. Claire Bonnard & Jean-François Giret & Marielle Lambert-Le Mener, 2013. "Les étudiants anticipent-ils correctement la valeur de leur diplôme sur le marché du travail ?," Post-Print halshs-00815912, HAL.

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