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Earnings Expectations and Higher Education Enrolment Decisions in Hungary

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  • Julia Varga

    (Department of Human Resources Budapest University of Economics and Public Administration)

Abstract

This paper is based on a survey carried out among Hungarian secondary school students to examine (i) what students know about wages and relative wages when they are in their senior year of secondary school and are about to make decisions on their further studies (ii) how they form expectations regarding their future earnings and employment probabilities at different levels of schooling and (iii) whether their expectations of the labour market outcome of higher education have an impact on the probability of applying for higher educational studies. The results show that students on the average, have quite an accurate knowledge of current wages by educational levels and occupations. Their expected earnings are higher than their estimations of current earnings and their labour market return expectations have an impact on the probability of applying for further studies.

Suggested Citation

  • Julia Varga, 2001. "Earnings Expectations and Higher Education Enrolment Decisions in Hungary," Budapest Working Papers on the Labour Market 0110, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:0110
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    References listed on IDEAS

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    1. Lauer, Charlotte, 2000. "Enrolments in higher education in West Germany: the impact of social background, labour market returns and educational funding," ZEW Discussion Papers 00-59, ZEW - Leibniz Centre for European Economic Research.
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    5. Brunello, Giorgio & Lucifora, Claudio & Winter-Ebmer, Rudolf, 2001. "The Wage Expectations of European College Students," IZA Discussion Papers 299, Institute of Labor Economics (IZA).
    6. Francine D. Blau & Marianne A. Ferber, 1991. "Career Plans and Expectations of Young Women and Men: The Earnings Gap and Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 26(4), pages 581-607.
    7. Gabor Kertesi & Janos Kollo, 2001. "Economic transformation and the revaluation of human capital - Hungary, 1986-1999," Budapest Working Papers on the Labour Market 0104, Institute of Economics, Centre for Economic and Regional Studies.
    8. Siow, Aloysius, 1984. "Occupational Choice under Uncertainty," Econometrica, Econometric Society, vol. 52(3), pages 631-645, May.
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    Cited by:

    1. Marija Andonova & Nikica Mojsoska-Blazevski, 2015. "Factors Influencing the Earnings Expectations among Macedonian Students: A Comparative Perspective with the EU Students," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 17(1), pages 71-110, June.
    2. Julia Varga, 2006. "The Role of Labour Market Expectations and Admission Probabilities in Students' Application Decisions on Higher Education: The Case of Hungary," Education Economics, Taylor & Francis Journals, vol. 14(3), pages 309-327.
    3. Tacsir, Ezequiel, 2010. "Making your own future: Expectations and occupation choice," MERIT Working Papers 2010-058, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Huntington-Klein, Nick, 2015. "Subjective and projected returns to education," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 10-25.
    5. Giorgio Brunello & Claudio Lucifora & Rudolf Winter-Ebmer, 2004. "The Wage Expectations of European Business and Economics Students," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).

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