The Microeconomics of College Choice, Careers, and Wages: Measuring the Impact of Higher Education
The Annals of the American Academy of Political and Social Science: The Changing Educational Quality of the Workforce, Robert Zemsky and Peter Cappelli (eds.), Vol. 559, September 1998
Posted: 5 Mar 1999
There has been a rising interest in understanding better the impact of college choices on wages, an interest motivated by concerns about increasing wage inequalities, about increasing costs of elite colleges, and about the perceived increasing roles of highly educated individuals in maintaining international competitiveness. Correctly estimating the economic payoff of human capital acquisition necessitates having a well-developed idea of the microeconomic determinants of human behavior. Without this, empirical analyses of such topics as career choice, college choice, or wage determination will be flawed. We discuss why these choice models are important, using examples of similar attempts that do not use sufficient information and illustrate their usefulness in a number of contexts. We close with a discussion of our recent empirical investigations of microeconomic models of college choice.
Note: This is a description of the paper and not the actual abstract.
JEL Classification: I2, J3
Suggested Citation: Suggested Citation