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Are Parental Perceived Returns to Schooling predicting Future Schooling Decisions? Evidence from Macedonia

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  • Alex Armand

    () (Navarra Center for International Development)

Abstract

This paper investigates the role of parental expected returns to schooling as determinants of future schooling decisions. I show that when observing schooling decisions two years after the collection of information about perceived returns, parental subjective expectations are strong predictors for the probability of the child to be enrolled in secondary school. I provide evidence that this relation is distinctively different when looking at boys and girls. By using the unique longitudinal dimension of the dataset, I provide evidence against cognitive biases in expectation reporting and against endogeneity issues, which supports the use of subjective data in decision models.

Suggested Citation

  • Alex Armand, 2015. "Are Parental Perceived Returns to Schooling predicting Future Schooling Decisions? Evidence from Macedonia," NCID Working Papers 02/2015, Navarra Center for International Development, University of Navarra.
  • Handle: RePEc:nva:unnvaa:wp02-2015
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    File URL: http://ncid.unav.edu/download/file/fid/491
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    More about this item

    Keywords

    Intrahousehold; Conditional cash transfers; expectations; returns to schooling; gender; cognitive biases;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I2 - Health, Education, and Welfare - - Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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