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The Reliability of Students' Earnings Expectations

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  • Diaz-Serrano, Luis

    (Universitat Rovira i Virgili)

  • Nilsson, William

    (University of the Balearic Islands)

Abstract

Eliciting expectation and introducing probabilistic questions into surveys have gained important interest. In this study, we focus on the reliability of students’ earnings expectations. To what extent is observed log earnings expectations affected by random measurement error (noise)? A test-retest method is applied and reliability is found to be fairly low; about 0.59 in 2015 and about 0.67 in 2016. Particularly homogeneous samples exaggerate problems of measurement error. The analysis show how these measures of reliability can be adjusted to become more suitable to other studies, where different degrees of homogeneity are present.

Suggested Citation

  • Diaz-Serrano, Luis & Nilsson, William, 2017. "The Reliability of Students' Earnings Expectations," IZA Discussion Papers 10700, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10700
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    1. Pamela Giustinelli, 2022. "Expectations in Education: Framework, Elicitation, and Evidence," Working Papers 2022-026, Human Capital and Economic Opportunity Working Group.

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    More about this item

    Keywords

    earnings expectations; reliability; measurement error;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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