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Estimating a Model of Qualitative and Quantitative Education Choices in France

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  • Belzil, Christian

    () (Ecole Polytechnique, Paris)

  • Poinas, François

    () (Toulouse School of Economics)

Abstract

We estimate a structural model of education choices in which individuals choose between a professional (or technical) and a general track at both high school and university levels using French panel data (Génération 98). The average per-period utility of attending general high school (about 10,000 euros per year) is 20% higher than that of professional high school (about 8000 euros per year). About 64% of total higher education enrollments are explained by this differential. At the same time, professional high school graduates would earn 5% to 6% more than general high school graduates if they both entered the labor market around age 18. The return to post-high school general education is highly convex (as in the US) and is reaped mostly toward the end of the higher education curriculum. Public policies targeting an increase in professional high school enrollments of 10 percentage points would require a subsidy of 300 euros per year of professional high school.

Suggested Citation

  • Belzil, Christian & Poinas, François, 2018. "Estimating a Model of Qualitative and Quantitative Education Choices in France," IZA Discussion Papers 11433, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11433
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    References listed on IDEAS

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    1. Lee, Donghoon & Wolpin, Kenneth I., 2010. "Accounting for wage and employment changes in the US from 1968-2000: A dynamic model of labor market equilibrium," Journal of Econometrics, Elsevier, vol. 156(1), pages 68-85, May.
    2. Belzil, Christian, 2007. "The return to schooling in structural dynamic models: a survey," European Economic Review, Elsevier, vol. 51(5), pages 1059-1105, July.
    3. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 48-87.
    4. Belzil, Christian & Poinas, François, 2010. "Education and early career outcomes of second-generation immigrants in France," Labour Economics, Elsevier, vol. 17(1), pages 101-110, January.
    5. James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    6. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
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    More about this item

    Keywords

    education choices; returns to schooling; professional education; structural model;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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