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Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China

Author

Listed:
  • Joop Hartog

    (University of Amsterdam)

  • Xiaohao Ding

    (Peking University)

  • Juan Liao

    (Peking University)

Abstract

We use the method of Dominitz and Manski (1996) to solicit anticipated wagedistributions for continuing to a Master degree or going to work after completing theBachelor degree. The means of the distributions have an effect on intention to continue aspredicted by theory. The dispersions in these individual distributions have no effect onintention to continue, suggesting that anticipated earnings risk does not play a role in thedecision.

Suggested Citation

  • Joop Hartog & Xiaohao Ding & Juan Liao, 2011. "Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China," Tinbergen Institute Discussion Papers 11-075/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20110075
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    References listed on IDEAS

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    1. Eaton, Jonathan & Rosen, Harvey S, 1980. "Taxation, Human Capital, and Uncertainty," American Economic Review, American Economic Association, vol. 70(4), pages 705-715, September.
    2. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2005. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey," Discussion Papers of DIW Berlin 511, DIW Berlin, German Institute for Economic Research.
    3. Stefan C. Wolter, 2000. "Wage Expectations: A Comparison of Swiss and US Students," Kyklos, Wiley Blackwell, vol. 53(1), pages 51-69, February.
    4. Schweri, Juerg & Hartog, Joop & Wolter, Stefan C., 2011. "Do students expect compensation for wage risk?," Economics of Education Review, Elsevier, vol. 30(2), pages 215-227, April.
    5. Xiaohao Ding & Joop Hartog & Yuze Sun, 2010. "Can we measure Individual Risk Attitudes in a Survey?," Tinbergen Institute Discussion Papers 10-027/3, Tinbergen Institute.
    6. Christian Belzil & Jörgen Hansen, 2002. "Unobserved Ability and the Return to Schooling," Econometrica, Econometric Society, vol. 70(5), pages 2075-2091, September.
    7. Bonin, Holger & Dohmen, Thomas & Falk, Armin & Huffman, David & Sunde, Uwe, 2007. "Cross-sectional earnings risk and occupational sorting: The role of risk attitudes," Labour Economics, Elsevier, vol. 14(6), pages 926-937, December.
    8. Ding, Xiaohao & Hartog, Joop & Sun, Yuze, 2010. "Can We Measure Individual Risk Attitudes in a Survey?," IZA Discussion Papers 4807, Institute of Labor Economics (IZA).
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    Cited by:

    1. Shelest Olena, 2015. "Risk of Investments in Human Capital and Expected Worker Mobility," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 47(1), pages 82-106, September.

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    More about this item

    Keywords

    wage expectations; educational choice;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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