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The Role of Nonpecuniary Considerations: Location Decisions of College Graduates From Low‐Income Backgrounds

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  • Yifan Gong
  • Todd Stinebrickner
  • Ralph Stinebrickner
  • Yuxi Yao

Abstract

We examine the initial postcollege geographic location decisions of students from low‐income backgrounds, focusing on the role of nonpecuniary considerations. Novel survey questions, in the spirit of the contingent valuation approach, allow us to characterize the full nonpecuniary benefits of each relevant location in dollar equivalents. Supplementing data on perceived location choice probabilities and wage expectations with our nonpecuniary measures allows us to estimate a stylized location choice model and obtain a comprehensive understanding of the importance of pecuniary and nonpecuniary factors. We also combine the nonpecuniary measures with realized location and earnings outcomes to characterize inequality in overall welfare.

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  • Yifan Gong & Todd Stinebrickner & Ralph Stinebrickner & Yuxi Yao, 2025. "The Role of Nonpecuniary Considerations: Location Decisions of College Graduates From Low‐Income Backgrounds," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 66(2), pages 903-931, May.
    • Handle: RePEc:wly:iecrev:v:66:y:2025:i:2:p:903-931
    DOI: 10.1111/iere.12763
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    Cited by:

    1. Romuald Meango & Esther Mirjam Girsberger, 2023. "Just Ask Them Twice: Choice Probabilities and Identification of Ex ante returns and Willingness-To-Pay," Papers 2303.03009, arXiv.org, revised May 2025.
    2. Gizem Koşar & Cormac O'Dea, 2022. "Expectations Data in Structural Microeconomic Models," NBER Working Papers 30094, National Bureau of Economic Research, Inc.
    3. Romuald Méango & François Poinas, 2023. "The (Option-) Value of Overstaying," CESifo Working Paper Series 10536, CESifo.
    4. Romauld Méango, 2023. "Identification of ex ante returns using elicited choice probabilities," Economics Series Working Papers 1007, University of Oxford, Department of Economics.
    5. Romuald Meango, 2023. "Using Probabilistic Stated Preference Analyses to Understand Actual Choices," Papers 2307.13966, arXiv.org.
    6. Meango, Romuald & Girsberger, Esther Mirjam, 2024. "Identification of Ex Ante Returns Using Elicited Choice Probabilities: An Application to Preferences for Public-Sector Jobs," IZA Discussion Papers 17174, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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