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The Role of Labour Market Expectations and Admission Probabilities in Students' Application Decisions on Higher Education: the case of Hungary

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  • Julia Varga

    (Institute of Economics, Hungarian Academy of Sciences)

Abstract

This paper analyses the effects of labour market expectations and admission probabilities on students' application strategies to higher education. The starting hypothesis of this study is that students consider the expected utility of their choices, a function of expected net lifetime earnings and the probability of admission. Based on a survey carried out among Hungarian secondary school students, three aspects of application decisions are investigated: the number of applications; the institutions/ field specialisation ranked first and last in students' choices; and the selection between state-funded and cost-priced education. The results of this paper confirm that both expected wages and admission probabilities determine students' application strategies and that the seemingly irrational student preferences for institutions/orientations with less favourable labour market opportunities might be the result of a rational decision process.

Suggested Citation

  • Julia Varga, 2003. "The Role of Labour Market Expectations and Admission Probabilities in Students' Application Decisions on Higher Education: the case of Hungary," Budapest Working Papers on the Labour Market 0308, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:0308
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    References listed on IDEAS

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    2. Rochat, Denis & Demeulemeester, Jean-Luc, 2001. "Rational choice under unequal constraints: the example of Belgian higher education," Economics of Education Review, Elsevier, vol. 20(1), pages 15-26, February.
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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. Montmarquette, Claude & Cannings, Kathy & Mahseredjian, Sophie, 2002. "How do young people choose college majors?," Economics of Education Review, Elsevier, vol. 21(6), pages 543-556, December.
    7. Jeff Dominitz & Charles F. Manski, 1996. "Eliciting Student Expectations of the Returns to Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 1-26.
    8. Julian R. Betts, 1996. "What Do Students Know about Wages? Evidence from a Survey of Undergraduates," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 27-56.
    9. Peter Galasi, 2003. "Estimating wage equations for Hungarian higher-education graduates," Budapest Working Papers on the Labour Market 0304, Institute of Economics, Centre for Economic and Regional Studies.
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    Cited by:

    1. Eva SZABO, 2021. "Education Provided By Hungarian Universities In The Light Of Sustainability And Innovation For Economic Performance," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 6(2), pages 92-98.
    2. Biscaia, Ricardo & Sá, Carla & Teixeira, Pedro N., 2021. "The (In)effectiveness of regulatory policies in higher education—The case of access policy in Portugal," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 176-185.
    3. Mihails Hazans & Ija Trapeznikova, 2006. "Access to Secondary Education in Albania: Incentives, Obstacles, and Policy Spillovers," SSE Riga/BICEPS Research Papers 2006-1, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    4. Tomasz Gajderowicz & Gabriela Grotkowska & Jerzy Mycielski & Leszek Wincenciak, 2014. "Social and economic determinants of higher education choices in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 38.
    5. Riphahn, Regina T. & Trübswetter, Parvati, 2011. "The intergenerational transmission of educational attainment in East and West Germany," IAB-Discussion Paper 201104, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Krzysztof Kalisiak & Małgorzata Szreder & Kaja Białowąs, 2011. "Finansowy i niefinansowy zwrot z edukacji," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 77-102.
    7. Török, Ádám, 2008. "A mezőny és tükörképei. Megjegyzések a magyar felsőoktatási rangsorok hasznáról és korlátairól [The field and reflections of it. Comments on the usefulness and limitations of league tables in Hunga," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 874-890.

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    More about this item

    Keywords

    Education; Human Capital; Skills; Occupational Choice; Labor Productivity;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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