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The Effects of Alignment of Educational Expectations and Occupational Aspirations on Labor Market Outcomes: Evidence from NLSY79

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  • Soobin Kim
  • Christopher Klager
  • Barbara Schneider

Abstract

Using data from the National Longitudinal Survey of Youth of 1979, this article examines the relationship between adolescents‘ educational and occupational expectations, and how they correspond to their subsequent labor market outcomes in adulthood. We show that over-aligned adolescents, those who expect to obtain more education than is necessary for their desired occupation, are predicted to have hourly wages 30% higher than under-aligned adolescents, whose educational expectations are lower than their occupational expectations. The misalignment of educational and occupational expectations is not related to the probability of being employed through individuals’ early twenties to late forties. However, over-aligned individuals are predicted to have more prestigious occupations than under-aligned individuals, suggesting that those in the over-aligned group sorted into better jobs over their careers. We also show that the effects of misaligned expectations on labor market outcomes change over the years, indicating that having high and aligned expectations are even more important for labor market outcomes than previously estimated.

Suggested Citation

  • Soobin Kim & Christopher Klager & Barbara Schneider, 2019. "The Effects of Alignment of Educational Expectations and Occupational Aspirations on Labor Market Outcomes: Evidence from NLSY79," The Journal of Higher Education, Taylor & Francis Journals, vol. 90(6), pages 992-1015, November.
    • Handle: RePEc:taf:uhejxx:v:90:y:2019:i:6:p:992-1015
    DOI: 10.1080/00221546.2019.1615333
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    Cited by:

    1. Jane Greve & Morten Saaby & Anders Rosdahl & Vibeke Tornhøj Christensen, 2021. "Uncertain occupational expectations at age 19 and later educational and labour market outcomes," LABOUR, CEIS, vol. 35(2), pages 163-191, June.
    2. Rod Missaghian, 2021. "Social Capital and Post-Secondary Decision-Making Alignment for Low-Income Students," Social Sciences, MDPI, vol. 10(3), pages 1-18, March.
    3. Kang, Yankun & Liang, Shuyuan & Bai, Caiquan & Feng, Chen, 2020. "Labor contracts and parents’ educational expectations for children: Income effect or expected effect?," Children and Youth Services Review, Elsevier, vol. 118(C).

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