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Wages and Higher Education Participation

Author

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  • Eleftheriou, Konstantinos
  • Athanasiou, George
  • Petrakis, Panagiotis

Abstract

The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of selection mechanism. An empirical examination is conducted, using U.S. data, in order to investigate the validity of our analytical results.

Suggested Citation

  • Eleftheriou, Konstantinos & Athanasiou, George & Petrakis, Panagiotis, 2009. "Wages and Higher Education Participation," MPRA Paper 19615, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19615
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    File URL: https://mpra.ub.uni-muenchen.de/22517/1/MPRA_paper_22517.pdf
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    References listed on IDEAS

    as
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    5. Neumark, David & Wascher, William, 1995. "Minimum Wage Effects on Employment and School Enrollment," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 199-206, April.
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    7. Pacheco, Gail A. & Cruickshank, Amy A., 2007. "Minimum wage effects on educational enrollments in New Zealand," Economics of Education Review, Elsevier, vol. 26(5), pages 574-587, October.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Admissions; High school wage; Higher education; Quality;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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