The Consumption Value of Higher Education
26 Pages Posted: 19 Dec 2009
Date Written: December 2009
The consumption value of higher education is an important factor behind the individual’s educational choice. We provide a comprehensive literature survey, and define the consumption value as the private, intended, non-pecuniary return to higher education. We provide new empirical evidence for the willingness to pay for the consumption value of a particular type of higher education. Even when controlling for ability selection, we find on US data that Liberal Arts graduates were willing to forego 46 pct. of their potential income in order to enjoy the consumption value of this educational type.
Keywords: educational choice, type of education, non-pecuniary return, willingness to pay, consumption value of education
JEL Classification: J24, J31, J33, I21, H89
Suggested Citation: Suggested Citation