Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China
21 Pages Posted: 9 May 2011
We use the method of Dominitz and Manski (1996) to solicit anticipated wage distributions for continuing to a Master degree or going to work after completing the Bachelor degree. The means of the distributions have an effect on intention to continue as predicted by theory. The dispersions in these individual distributions have no effect on intention to continue, suggesting that anticipated earnings risk does not play a role in the decision.
Keywords: educational choice, wage expectations
JEL Classification: D8, I21, J24
Suggested Citation: Suggested Citation