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Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China

Author

Listed:
  • Hartog, Joop

    (University of Amsterdam)

  • Ding, Xiaohao

    (Peking University)

  • Liao, Juan

    (Peking University)

Abstract

We use the method of Dominitz and Manski (1996) to solicit anticipated wage distributions for continuing to a Master degree or going to work after completing the Bachelor degree. The means of the distributions have an effect on intention to continue as predicted by theory. The dispersions in these individual distributions have no effect on intention to continue, suggesting that anticipated earnings risk does not play a role in the decision.

Suggested Citation

  • Hartog, Joop & Ding, Xiaohao & Liao, Juan, 2011. "Is Earnings Uncertainty Relevant for Educational Choice? An Empirical Analysis for China," IZA Discussion Papers 5679, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5679
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    References listed on IDEAS

    as
    1. Xiaohao Ding & Joop Hartog & Yuze Sun, 2010. "Can we measure Individual Risk Attitudes in a Survey?," Tinbergen Institute Discussion Papers 10-027/3, Tinbergen Institute.
    2. Ding, Xiaohao & Hartog, Joop & Sun, Yuze, 2010. "Can We Measure Individual Risk Attitudes in a Survey?," IZA Discussion Papers 4807, Institute of Labor Economics (IZA).
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    Cited by:

    1. Shelest Olena, 2015. "Risk of Investments in Human Capital and Expected Worker Mobility," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 47(1), pages 82-106, September.

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    More about this item

    Keywords

    wage expectations; educational choice;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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