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

21 Pages Posted: 9 May 2011

See all articles by Joop Hartog

Joop Hartog

University of Amsterdam - Faculty of Economics and Business (FEB); Tinbergen Institute; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Xiaohao Ding

affiliation not provided to SSRN

Juan Liao

affiliation not provided to SSRN

Abstract

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

Hartog, Joop and Ding, Xiaohao and Liao, Juan, Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China. IZA Discussion Paper No. 5679. Available at SSRN: https://ssrn.com/abstract=1835318

Joop Hartog (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Xiaohao Ding

affiliation not provided to SSRN ( email )

No Address Available

Juan Liao

affiliation not provided to SSRN

No Address Available

Register to save articles to
your library

Register

Paper statistics

Downloads
19
Abstract Views
343
PlumX Metrics