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Aspiration Levels and Educational Choices An experimental study

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  • Lionel Page
  • Louis Lévy-Garboua
  • Claude Montmarquette

Abstract

The explanation of social inequalities in education is still a debated issue in economics. Recent empirical studies tend to downplay the potential role of credit constraint. This article tests a different potential explanation of social inequalities in education, specifically that social differences in aspiration level result in different educational choices. Having existed for a long time in the sociology of education, this explanation can be justified if aspiration levels are seen as reference points in a Prospect Theory framework. In order to test this explanation, this article applies the method of experimental economics to the issue of education choice and behaviour. One hundred twenty-nine individuals participated in an experiment in which they had to perform a task over fifteen stages grouped in three blocks or levels. In order to continue through the experiment, a minimum level of success was required at the end of each level. Rewards were dependent on the final level successfully reached. At the end of each level, participants could either choose to stop and take their reward or to pay a cost to continue further in order to possibly receive higher rewards. To test the impact of aspiration levels, outcomes were either presented as gains or losses relative to an initial sum. In accordance with the theoretical predictions, participants in the loss framing group choose to go further in the experiment. There was also a significant and interesting gender effect in the loss framing treatment, such that males performed better and reached higher levels.
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  • Lionel Page & Louis Lévy-Garboua & Claude Montmarquette, 2006. "Aspiration Levels and Educational Choices An experimental study," CIRANO Working Papers 2006s-27, CIRANO.
    • Handle: RePEc:cir:cirwor:2006s-27
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    References listed on IDEAS

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    1. Stephen V. Cameron & Christopher Taber, 2004. "Estimation of Educational Borrowing Constraints Using Returns to Schooling," Journal of Political Economy, University of Chicago Press, vol. 112(1), pages 132-182, February.
    2. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
    3. Rizzo, John A. & Zeckhauser, Richard J., 2007. "Pushing incomes to reference points: Why do male doctors earn more?," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 514-536, July.
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    Cited by:

    1. Sarkar, Sudipa & Chakravorty, Bhaskar & Lyonette, Clare, 2020. "Social Identity and Aspiration - Double Jeopardy or Intersectionality? Evidence from Rural India," GLO Discussion Paper Series 724, Global Labor Organization (GLO).
    2. Magali Jaoul-Grammare, 2018. "Why do young people make atypical gender-related study choices? An analysis of French master’s graduates," Working Papers of BETA 2018-39, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Claude DIEBOLT & Magali JAOUL-GRAMMARE, 2019. "The Cliometric Model of Glutting: An Experimental Analysis," Working Papers of BETA 2019-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    4. Khadjavi, Menusch & Nicklisch, Andreas, 2018. "Parents’ ambitions and children’s competitiveness," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 87-102.
    5. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.
    6. repec:dau:papers:123456789/12016 is not listed on IDEAS
    7. Dercon, Stefan & Orkin, Kate & Bernard, Tanguy & Taffesse, Alemayehu, 2014. "The Future in Mind: Aspirations and Forward-Looking Behaviour in Rural Ethiopia," CEPR Discussion Papers 10224, C.E.P.R. Discussion Papers.
    8. D'Haultfoeuille, Xavier & Maurel, Arnaud, 2009. "Inference on a Generalized Roy Model, with an Application to Schooling Decisions in France," IZA Discussion Papers 4606, Institute of Labor Economics (IZA).
    9. Lekfuangfu, Warn N. & Odermatt, Reto, 2022. "All I have to do is dream? The role of aspirations in intergenerational mobility and well-being," European Economic Review, Elsevier, vol. 148(C).
    10. Rocío Moreno-Sánchez & Vanesa Martínez & Jorge H. Maldonado & Arturo Rodríguez, 2017. "Cambios en bienestar subjetivo, aspiraciones y expectativas en participantes de programas de alivio a la pobreza: un análisis cualitativo de Produciendo por mi futuro en Colombia," Documentos CEDE 15818, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Arvid Hoffmann & Sam Henry & Nikos Kalogeras, 2013. "Aspirations as reference points: an experimental investigation of risk behavior over time," Theory and Decision, Springer, vol. 75(2), pages 193-210, August.
    12. Claude Diebolt & Magali Jaoul-Grammare, 2016. "Cliométrie de l’enseignement supérieur : une analyse expérimentale de la théorie de l’engorgement," Working Papers 02-16, Association Française de Cliométrie (AFC).
    13. Marco Bertoni & Luca Corazzini, 2018. "Asymmetric affective forecasting errors and their correlation with subjective well-being," PLOS ONE, Public Library of Science, vol. 13(3), pages 1-22, March.
    14. Bowden, Mark P. & Doughney, James, 2012. "The importance of cultural and economic influences behind the decision to attend higher education," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(1), pages 95-103.
    15. Jaroslava Hlouskova & Panagiotis Tsigaris & Anetta Caplanova & Rudolf Sivak, 2017. "A behavioral portfolio approach to multiple job holdings," Review of Economics of the Household, Springer, vol. 15(2), pages 669-689, June.
    16. Nicolas Gury, 2011. "Dropping out of higher education in France: a micro-economic approach using survival analysis," Education Economics, Taylor & Francis Journals, vol. 19(1), pages 51-64.
    17. Lionel Page, 2010. "Experimental Economics method to study pupils motivation," Revue d'économie politique, Dalloz, vol. 120(5), pages 779-792.
    18. Liam C. Malloy, 2015. "Loss aversion, education, and intergenerational mobility," Education Economics, Taylor & Francis Journals, vol. 23(3), pages 318-337, June.
    19. Mequanint B. Melesse & Amos Nyangira Tirra & Yabibal M. Walle & Michael Hauser, 2023. "Understanding the Determinants of Aspirations in Rural Tanzania: Does Financial Literacy Matter?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1294-1321, December.
    20. Rocío Moreno-Sánchez & Vanesa Martínez & Jorge H. Maldonado & Arturo Rodríguez, 2018. "Changes in subjective well-being, aspirations and expectations in participants of poverty alleviation programs: A qualitative analysis of Produciendo Por Mi Futuro in Colombia," Documentos CEDE 15987, Universidad de los Andes, Facultad de Economía, CEDE.

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    More about this item

    Keywords

    education inequality; prospect theory; experimental economics; inégalité en éducation; théorie de la prospective; économie expérimentale;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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