Time-to-Degree and the Business Cycle
39 Pages Posted: 18 May 2007
Date Written: May 2007
Abstract
When students themselves enjoy large degrees of freedom in determining the duration of their studies, it results in a fairly large degree of interindividual variance in terms of time-to-degree. This paper investigates individual time-to-degree in a model where students determine the optimum time-to-degree whilst weighing up the cost against the consumption benefit accruing from an additional semester of studies. According to this model, the cost level and consumption benefit depend, in turn, on the general economic environment during the study period. An empirical investigation using a data set based on Swiss university graduates from 1981 to 2001 shows that changes in the unemployment rate, real interest rate, wage levels, and economic growth have a significant impact on individual time-to-degree. These results are consistent with the conclusions derived from the theoretical model.
Keywords: time-to-degree, business cycle, consumption benefit
JEL Classification: C81, E32, I2, I23
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Wage Expectations of European College Students
By Giorgio Brunello, Claudio Lucifora, ...
-
The Wage Expectations of European College Students
By Giorgio Brunello, Claudio Lucifora, ...
-
Why Do Students Expect to Stay Longer in College? Evidence from Europe
-
Compensating Wage Differentials for Schooling Risk in Denmark
By Luis Diaz-serrano, Joop Hartog, ...
-
A Risk Augmented Mincer Earnings Equation? Taking Stock
By Joop Hartog
-
Early Labour Market Returns to College Subject
By Paolo Buonanno and Dario Pozzoli
-
The College Wage Gap in 10 European Countries: Evidence from Two Cohorts
By Giorgio Brunello, Simona Comi, ...
-
Do Students Expect Compensation for Wage Risk?
By Juerg Schweri, Joop Hartog, ...
-
Field of Study and University Graduates' Early Employment Outcomes in Italy During 1995–2004
-
By Wiji Arulampalam, Robin Naylor, ...