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Subjective returns to education: Rational expectations of disadvantaged groups in India

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  • Pooja Balasubramanian

Abstract

This study uses data collected from school students in Mumbai to investigate how they perceive subjective expected returns for different levels of education in an environment that includes labour market discrimination. We are particularly keen to observe subjective returns to education for different social identity groups, such as gender, religion, and caste. Despite lower actual returns to education in the labour market, students from Other Backward Castes and Scheduled Castes and Tribes do not have significantly different beliefs relative to their advantaged peers.

Suggested Citation

  • Pooja Balasubramanian, 2020. "Subjective returns to education: Rational expectations of disadvantaged groups in India," WIDER Working Paper Series wp-2020-107, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-107
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    References listed on IDEAS

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    1. Sarkar, Sudipa & Sahoo, Soham & Klasen, Stephan, 2019. "Employment transitions of women in India: A panel analysis," World Development, Elsevier, vol. 115(C), pages 291-309.
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    3. McKenzie, David & Gibson, John & Stillman, Steven, 2013. "A land of milk and honey with streets paved with gold: Do emigrants have over-optimistic expectations about incomes abroad?," Journal of Development Economics, Elsevier, vol. 102(C), pages 116-127.
    4. Huntington-Klein, Nick, 2015. "Subjective and projected returns to education," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 10-25.
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    More about this item

    Keywords

    Labour market discrimination; Social identity; Returns to education; India; Heterogeneity; Distributional regression;
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