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Wages and Higher Education Participation

  • Eleftheriou, Konstantinos
  • Athanasiou, George
  • Petrakis, Panagiotis

The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of selection mechanism. An empirical examination is conducted, using U.S. data, in order to investigate the validity of our analytical results.

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File URL: http://mpra.ub.uni-muenchen.de/19615/1/MPRA_paper_19615.pdf
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File URL: http://mpra.ub.uni-muenchen.de/22517/1/MPRA_paper_22517.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19615.

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Date of creation: 13 Sep 2009
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Handle: RePEc:pra:mprapa:19615
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  1. MacKinnon, James G, 1996. "Numerical Distribution Functions for Unit Root and Cointegration Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 601-18, Nov.-Dec..
  2. Ragan, James F, Jr, 1977. "Minimum Wages and the Youth Labor Market," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 129-36, May.
  3. Neumark, David & Wascher, William, 1995. "Minimum Wage Effects on Employment and School Enrollment," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 199-206, April.
  4. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
  5. Pacheco, Gail A. & Cruickshank, Amy A., 2007. "Minimum wage effects on educational enrollments in New Zealand," Economics of Education Review, Elsevier, vol. 26(5), pages 574-587, October.
  6. Stuart Landon, 1997. "High School Enrollment, Minimum Wages and Education Spending," Canadian Public Policy, University of Toronto Press, vol. 23(2), pages 141-163, June.
  7. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
  8. Lipowski, Adam & Ferreira, António L., 2005. "A model of student's dilemma," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 354(C), pages 539-546.
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