IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05722358.html

Economic preferences predict higher-education choices

Author

Listed:
  • Thomas F Epper

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UZH - Universität Zürich [Zürich] = University of Zurich, UCPH - Københavns Universitet = University of Copenhagen = Université de Copenhague)

  • Ernst Fehr

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UZH - Universität Zürich [Zürich] = University of Zurich, UCPH - Københavns Universitet = University of Copenhagen = Université de Copenhague)

  • Kristoffer B Hvidberg

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UZH - Universität Zürich [Zürich] = University of Zurich, UCPH - Københavns Universitet = University of Copenhagen = Université de Copenhague)

  • Claus T Kreiner

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UZH - Universität Zürich [Zürich] = University of Zurich, UCPH - Københavns Universitet = University of Copenhagen = Université de Copenhague)

  • Søren Leth-Petersen

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UZH - Universität Zürich [Zürich] = University of Zurich, UCPH - Københavns Universitet = University of Copenhagen = Université de Copenhague)

  • Basit Zafar

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UZH - Universität Zürich [Zürich] = University of Zurich, UCPH - Københavns Universitet = University of Copenhagen = Université de Copenhague)

Abstract

We examine whether individual preferences predict higher-education choices. According to standard human capital theory, differences in individuals' time and risk preferences lead to differences in educational investments. Testing this hypothesis is challenging, as it requires measuring individuals' preferences, doing so before they make educational investments, and subsequently observing their educational choices. We combine incentivized, experimentally elicited measures of time and risk preferences for a large, representative sample of 18- to 19-y-old Danes with administrative data on subsequent higher-education choices, program-specific earnings trajectories, prior school performance, and family background. In line with theory, we find that more patient individuals choose longer education programs and programs with steeper early-career earnings profiles, while more risk-averse individuals select programs with lower earnings dispersion and reduced downside risk. These relationships remain strong after controlling for cognitive ability, prior academic performance, and family background. Our findings suggest that preferences have a substantial impact on real-world educational investments and have implications for educational sorting.

Suggested Citation

  • Thomas F Epper & Ernst Fehr & Kristoffer B Hvidberg & Claus T Kreiner & Søren Leth-Petersen & Basit Zafar, 2026. "Economic preferences predict higher-education choices," Post-Print hal-05722358, HAL.
    • Handle: RePEc:hal:journl:hal-05722358
    DOI: 10.1073/pnas.2610891123
    Note: View the original document on HAL open archive server: https://hal.science/hal-05722358v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05722358v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1073/pnas.2610891123?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
    ---><---

    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:hal:journl:hal-05722358. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.