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Do They Understand the Benefits from Education? Evidence on Dutch High School Students’ Earnings Expectations

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Listed:
  • Mazza, Jacopo

    (Utrecht University)

  • Hartog, Joop

    (University of Amsterdam)

Abstract

Using an internet collected dataset, we will provide some empirical evidence on the information that Dutch high school students possess before their decision on tertiary education participation. The sample is prone to selective participation and high attrition, but we detect little systematic effects and inconsistent reporting of probability distribution is not more frequent than in controlled settings. We find little support for patterns that one would expect from individuals having private information. Girls expect substantially lower earnings in all schooling scenarios, but implicit rate of returns do not differ from those anticipated by boys. We find no evidence of expected risk compensation.

Suggested Citation

  • Mazza, Jacopo & Hartog, Joop, 2011. "Do They Understand the Benefits from Education? Evidence on Dutch High School Students’ Earnings Expectations," IZA Discussion Papers 5714, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5714
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    References listed on IDEAS

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    Cited by:

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    2. Erfort, Olga & Erfort, Irina & Zbarazskaya, Larisa, 2016. "Financing higher education in Ukraine: The binary model versus the diversification model," International Journal of Educational Development, Elsevier, vol. 49(C), pages 330-335.
    3. Pamela Giustinelli, 2022. "Expectations in Education: Framework, Elicitation, and Evidence," Working Papers 2022-026, Human Capital and Economic Opportunity Working Group.
    4. Koşar, Gizem & van der Klaauw, Wilbert, 2023. "Workers' Perceptions of Earnings Growth and Employment Risk," IZA Discussion Papers 16013, Institute of Labor Economics (IZA).
    5. 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.

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    More about this item

    Keywords

    wage expectations; wage risk; risk compensation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I20 - Health, Education, and Welfare - - Education - - - General

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