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Academic and non-academic investments at university: The role of expectations, preferences and constraints

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  • Delavande, Adeline
  • Del Bono, Emilia
  • Holford, Angus

Abstract

This paper estimates a discrete choice model of time allocation decisions made by university students. We consider investments in academic and non-academic activities, such as job placements or volunteering. Identification is achieved using data collected through a recent survey of UK university students on subjective expectations about the returns to these activities, and the enjoyment students derive from them. Unobserved heterogeneity in the choice set is addressed using a sufficient set logit method. The analysis reveals significant ethnic differences in the level of investments, expected academic and labour market returns, and enjoyment of academic and non-academic activities. Simulations suggest that existing constraints play an important role in explaining ethnic gaps in investments.

Suggested Citation

  • Delavande, Adeline & Del Bono, Emilia & Holford, Angus, 2022. "Academic and non-academic investments at university: The role of expectations, preferences and constraints," Journal of Econometrics, Elsevier, vol. 231(1), pages 74-97.
    • Handle: RePEc:eee:econom:v:231:y:2022:i:1:p:74-97
    DOI: 10.1016/j.jeconom.2020.03.019
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    More about this item

    Keywords

    Subjective expectations; Choice set heterogeneity; Higher education; Ethnic gap;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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